a Efficlency loss from underproductlon d D O2 Quantity (bags) (a) Efficlency loss from overproduction D Quantity (bags) (b) Price (per bag) Price (per bag)
Assume the following values for attached figures: Q1 = 20 bags. Q2 = 15 bags. Q3 = 27 bags. The
$59 per bag. The price at g is $31 per bag. Apply the formula for the area of a triangle (Area = ½ × Base × Height) to answer the following questions. LO4.2
a. What is the dollar value of the total surplus (
b. What is the dollar value of the
c. What is the dollar value of the deadweight loss when output level Q3 is produced? What is the dollar value of the total surplus when output level Q3 is produced?
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