Please help me solve part b,c and d of this question. Also, solve all the surpluses using by mentioning them in the graph (and use integration). 9.7 Suppose that the demand for broccoli is given byDemand: Q = 1,000 – 5Pwhere Q is quantity per year measured in hundreds ofbushels and P is price in dollars per hundred bushels.The long-run supply curve for broccoli is given bySupply: Q = 4P – 80a. Show that the equilibrium quantity here isQ = 400. At this output, what is the equili-brium price? How much in total is spent onbroccoli? What is consumer surplus at thisequilibrium? What is producer surplus at thisequilibrium?b. How much in total consumer and producersurplus would be lost if Q = 300 instead ofQ = 400?c. Show how the allocation of the loss of totalconsumer and producer surplus between sup-pliers and demanders described in part bdepends on the price at which broccoli is sold.How would the loss be shared if P = 140?How about if P = 95?d. What would the total loss of consumer andproducer surplus be if Q = 450 rather thanQ = 400? Show that the size of this total lossalso is independent of the price at which thebroccoli is sold.

Demand function: Q = 1000 -5PLong run supply function: Q= 4P - 80

b. How much in total consumer and producer surplus would be lost if Q = 300 instead of Q = 400? c. Show how the allocation of the loss of total consumer and producer surplus between sup- pliers and demanders described in part b depends on the price at which broccoli is sold. How would the loss be shared if P = 140? How about if P = 95? d. What would the total loss of consumer and producer surplus be if Q= 450 rather than Q = 400? Show that the size of this total loss also is independent of the price at which the broccoli is sold.

b. How much in total consumer and producer surplus would be lost if Q = 300 instead of Q = 400? c. Show how the allocation of the loss of total consumer and producer surplus between sup- pliers and demanders described in part b depends on the price at which broccoli is sold. How would the loss be shared if P = 140? How about if P = 95? d. What would the total loss of consumer and producer surplus be if Q= 450 rather than Q = 400? Show that the size of this total loss also is independent of the price at which the broccoli is sold.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Please help me solve part b,c and d of this question. Also, solve all the surpluses using by mentioning them in the graph (and use integration).

9.7 Suppose that the demand for broccoli is given by
Demand: Q = 1,000 – 5P
where Q is quantity per year measured in hundreds of
bushels and P is price in dollars per hundred bushels.
The long-run supply curve for broccoli is given by
Supply: Q = 4P – 80
a. Show that the equilibrium quantity here is
Q = 400. At this output, what is the equili-
brium price? How much in total is spent on
broccoli? What is consumer surplus at this
equilibrium? What is producer surplus at this
equilibrium?
b. How much in total consumer and producer
surplus would be lost if Q = 300 instead of
Q = 400?
c. Show how the allocation of the loss of total
consumer and producer surplus between sup-
pliers and demanders described in part b
depends on the price at which broccoli is sold.
How would the loss be shared if P = 140?
How about if P = 95?
d. What would the total loss of consumer and
producer surplus be if Q = 450 rather than
Q = 400? Show that the size of this total loss
also is independent of the price at which the
broccoli is sold.

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