a) Use the information in the table to graph supply & demand curves. Show Consumer Surplus and Producer Surplus on your graph. b) Find the equilibrium price and quantity, using both the table and the graph for a more precise answer. Calculate total revenue at the equilibrium. c) Suppose the Mayor decides that deep fried green chiles cost too much. Show the impact of a price ceiling at $6.00 on your graph. What would happen to the quantity produced and consumed? What would happen to total revenue?

a) Use the information in the table to graph supply & demand curves. Show Consumer Surplus and Producer Surplus on your graph. b) Find the equilibrium price and quantity, using both the table and the graph for a more precise answer. Calculate total revenue at the equilibrium. c) Suppose the Mayor decides that deep fried green chiles cost too much. Show the impact of a price ceiling at $6.00 on your graph. What would happen to the quantity produced and consumed? What would happen to total revenue?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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