ADVANCED ANALYSIS Given the following diagrams: Q1 = 15 bags, Q2 = 10 bags. Q3 = 22 bags. The market equilibrium price point b is $40 per bag. The price at point a is $70 and the price at point c is $10 per bag. The price at point d is $50 and the price at point e is $30 per bag. The price at point f is $54 and the price at point g is $26 per bag. Apply the formula for the area of a triangle (Area = ½ x Base x Height) to answer the following questions. Emoency bss tmunderpoducton Emency los tom production Quantity (Bags) Quantity (aga) a. What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output Q, level is being produced? How large is the dollar value of the consumer surplus at that output Q, level? Instructions: Round your answer to one decimal place. b. What is the dollar value of the deadweight loss when output level Q2 is being produced? (teg (teg d

ADVANCED ANALYSIS Given the following diagrams: Q1 = 15 bags, Q2 = 10 bags. Q3 = 22 bags. The market equilibrium price point b is $40 per bag. The price at point a is $70 and the price at point c is $10 per bag. The price at point d is $50 and the price at point e is $30 per bag. The price at point f is $54 and the price at point g is $26 per bag. Apply the formula for the area of a triangle (Area = ½ x Base x Height) to answer the following questions. Emoency bss tmunderpoducton Emency los tom production Quantity (Bags) Quantity (aga) a. What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output Q, level is being produced? How large is the dollar value of the consumer surplus at that output Q, level? Instructions: Round your answer to one decimal place. b. What is the dollar value of the deadweight loss when output level Q2 is being produced? (teg (teg d

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section30.2: Internalizing Externalities

Problem 2ST

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Question

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Problem 4-4 [Algorithmic)
ADVANCED ANALYSIS Given the following diagrams: Q1 = 15 bags, Q2 = 10 bags,
Q3 - 22 bags. The market equilibrium price point b is $40 per bag.
The price at point a is $70 and the price at point c is $10 per bag. The price at
point d is $50 and the price at point e is $30 per bag. The price at point f is $54
and the price at point g is $26 per bag.
Apply the formula for the area of a triangle (Area = 2 x Base x Height) to answer
the following questions.
(a)
(b)
Emcency bss from underproduction
Emcency los from overproduction
Quantity (Bags)
Quantity (Bags)
a. What is the dollar value of the total surplus (producer surplus plus consumer
surplus) when the allocatively efficient output Q, level is being produced?
How large is the dollar value of the consumer surplus at that output Q, level?
Instructions: Round your answer to one decimal place.
b. What is the dollar value of the deadweight loss when output level Q2 is being
produced?
Instructions: Round your answer to one decimal place.
What is the total surplus when output level Q2 is being produced?
Instructions: Round your answer to one decimal place.
c. What is the dollar value of the deadweight loss when output level Q3 is
produced?
Instructions: Round your answer to one decimal place.
What is the dollar value of the total surplus when output level Q3 is produced?
Instructions: Round your answer to one decimal place.
References
Numeric Response
Problem 44 Algorithmic
Leaming Objective: 04-02 Explain the origin of both
consumer surplus and producer surplus, and explain how
property functioning markets maximize their sum, economic
surplus, while optimally allocating resources
(Beg m oa

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