ADVANCED ANALYSIS Assume the following values for the figures below Q_{1} = 20 bags Q_{2} = 15 bags. Q_{3}; =27 bags. The market equilibrium price is $45 per bag. The price at a is $85 per bag. The price at c is $5 per bag. The price at f is $59 per bag. The price at g $31 per bag. Apply the formula for the area of a triangle (Area=1/ 2 * Base*Height) to answer the following questions. Instructions: Enter your answers as a whole number.a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocativelyefficient output level is produced?24What is the dollar value of the consumer surplus at that output level?2$b. What is the dollar value of the deadweight loss when output level Q2 is produced?24What is the total surplus when output level Q2 is produced?24c. What is the dollar valueof the deadweight loss when output level Q3 is produced?24What is the dollar value of the total surplus when output level Q3 is produced? ADVANCED ANALYSIS Assume the following values for the figures below: Q = 20 bags. Q2 = 15 bags. Q3= 27 bags. The market equilibrium price is $45 per bag. The price at a is $85 per bag. The price at cis $5per bag. The price at fis $59 per bag. The price at g is $31 per bag. Apply the formula for the area of atriangle (Area = 2 x Base × Height) to answer the following questions.(a)(b)Efficiency loss from underproductionEfficiency loss from overproductionB.a$85$85$55$59$45$35$45$31e$5$5C15202027Quantity (bags)Quantity (bags)Price (per bag)Price (per bag)

The total surplus in a market is a measure of the overall well-being of all market participants. It is the sum of the consumer and producer surpluses. Consumer surplus is the difference between what consumers are willing to pay for a good and what they actually pay for it. On the other hand, the difference between the amount the producer is willing to supply goods for and the actual amount received by him when he makes the trade is defined as producer surplus. Producer surplus is a metric of producer well-being. A deadweight loss is a societal cost caused by market inefficiency, which occurs when supply and demand are not in balance. A deadweight loss, which is most commonly used in economics, can be applied to any deficiency caused by inefficient resource allocation.a. When the allocative efficient output is produced the equilibrium level of output is 20 units; Now, determine the total surplus at the allocative efficient level of output; Total surplus = 12×quantity×price= 12×20×$85-$5= 12×20×$80= $40×20= $800 Now, calculate the consumer surplus at the equilibrium level of output is 20 units and the equilibrium level of price is $45. Consumer surplus = 12×quantity×price= 12×20×$85-$45=12×20×$40=10×$40=$400 Hence, the total surplus at the allocative efficient level of output is $800 and the consumer surplus is $400.b. When the output level is Q2 = 15 units, the dollar value of the deadweight loss at Q2 level of output is; Deadweight loss = 12×price×quantity= 12×$55-$35×20-15= 12×$20×5= $10×5= $50 When the output level is Q2 = 15 units, the dollar value of the total surplus is; Total surplus = area of trapezium ADEC= 12×$85-$5+$55-$35×15= 12×$80+$20×15=12×$100×15= $50×15= $750 Hence, the total surplus at Q2 level of output is $750 and the deadweight loss is $50.c. When the output level is Q3 = 27 units, the dollar value of the deadweight loss at Q3 level of output is; Deadweight loss = 12×price×quantity= 12×$59-$31×27-20= 12×$28×7= $14×7= $98 When the output level is Q3 = 27 units, the dollar value of the total surplus is; Total surplus = area of ABC-Deadweight loss= $800-$98=$702 Hence, the total surplus at Q3 level of output is $702 and the deadweight loss is $98.