Answer the following questions in your own words. Start a new thread while replying.1. What is consumer surplus? How do we calculate it? Provide one real-world exampleto explain.2. What is producer surplus? How do we calculate it? Provide one real-world exampleto explain.3. Refer to the graph below:Prio90Suply30302010Dend1020Based on the graph information calculate:a. Consumer surplus, producer surplus, and total surplus at equilibrium.b. Calculate the consumer surplus when the price is $60 per unit.C. Analyze what happened to consumer surplus when the price increased from $40per unit to $60 per unit. (for example, explain loss to the existing buyers and loss tothe buyers who left the market).

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Answer the following questions in your own words. Start a new thread while replying. 1. What is consumer surplus? How do we calculate it? Provide one real-world example to explain.

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Chapter1: Making Economics Decisions

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Answer the following questions in your own words. Start a new thread while replying.
1. What is consumer surplus? How do we calculate it? Provide one real-world example
to explain.
2. What is producer surplus? How do we calculate it? Provide one real-world example
to explain.
3. Refer to the graph below:
Prio
90
Suply
30
30
20
10
Dend
10
20
Based on the graph information calculate:
a. Consumer surplus, producer surplus, and total surplus at equilibrium.
b. Calculate the consumer surplus when the price is $60 per unit.
C. Analyze what happened to consumer surplus when the price increased from $40
per unit to $60 per unit. (for example, explain loss to the existing buyers and loss to
the buyers who left the market).

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