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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 $5 per bag. The price at fis $59 per bag. The price at g is $31 per bag. Apply the formula for the area of a triangle (Area = ½ × Base x Height) to answer the following questions. %3D (a) (b) Efficiency loss from underproduction Efficiency loss from overproduction $85 $85 $55 $59 $45 $45 $35 $31 e $5 $5 D 15 20 20 27 Quantity (bags) Quantity (bags) Price (per bag) Price (per bag)

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 $5 per bag. The price at fis $59 per bag. The price at g is $31 per bag. Apply the formula for the area of a triangle (Area = ½ × Base x Height) to answer the following questions. %3D (a) (b) Efficiency loss from underproduction Efficiency loss from overproduction $85 $85 $55 $59 $45 $45 $35 $31 e $5 $5 D 15 20 20 27 Quantity (bags) Quantity (bags) Price (per bag) Price (per bag)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 $31 per bag. Apply the formula for the area of a triangle (Area=1/ 2 * Base*Height) to answer the following questions.
Instructions: Enter your answers as a whole number. a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced? 24 What is the dollar value of the consumer surplus at that output level? 2$ b. What is the dollar value of the deadweight loss when output level Q2 is produced? 24 What is the total surplus when output level Q2 is produced? 24 c. What is the dollar valueof the deadweight loss when output level Q3 is produced? 24 What is the dollar value of the total surplus when output level Q3 is produced?
Transcribed Image Text:Instructions: Enter your answers as a whole number. a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced? 24 What 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? 24 What is the total surplus when output level Q2 is produced? 24 c. What is the dollar valueof the deadweight loss when output level Q3 is produced? 24 What 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 $5 per bag. The price at fis $59 per bag. The price at g is $31 per bag. Apply the formula for the area of a triangle (Area = 2 x Base × Height) to answer the following questions. (a) (b) Efficiency loss from underproduction Efficiency loss from overproduction B. a $85 $85 $55 $59 $45 $35 $45 $31 e $5 $5 C 15 20 20 27 Quantity (bags) Quantity (bags) Price (per bag) Price (per bag)
Transcribed Image Text: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 $5 per bag. The price at fis $59 per bag. The price at g is $31 per bag. Apply the formula for the area of a triangle (Area = 2 x Base × Height) to answer the following questions. (a) (b) Efficiency loss from underproduction Efficiency loss from overproduction B. a $85 $85 $55 $59 $45 $35 $45 $31 e $5 $5 C 15 20 20 27 Quantity (bags) Quantity (bags) Price (per bag) Price (per bag)
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