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Based on the answers calculated here, what we can infer? Consumer surplus = Area of A+B+E =((30-20) x 2000/2) = 10000 Producer surplus = Area of C+D+F =((20-10) x 2000/2) =  10000 New Consumer surplus = Area of A+B+C = 2500+5000+5000 = 12500 Increase in consumer surplus = C - E =5000-2500 = 2500 New producer surplus = Area of D = 2500 Decrease in producer surplus = Area of C + F = 5000+2500 = 7500 Deadweight loss = Net loss in social welfare = Area of E + F =((25-15) x (2000-1000)/2) = 5000

Based on the answers calculated here, what we can infer? Consumer surplus = Area of A+B+E =((30-20) x 2000/2) = 10000 Producer surplus = Area of C+D+F =((20-10) x 2000/2) =  10000 New Consumer surplus = Area of A+B+C = 2500+5000+5000 = 12500 Increase in consumer surplus = C - E =5000-2500 = 2500 New producer surplus = Area of D = 2500 Decrease in producer surplus = Area of C + F = 5000+2500 = 7500 Deadweight loss = Net loss in social welfare = Area of E + F =((25-15) x (2000-1000)/2) = 5000

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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Based on the answers calculated here, what we can infer?

Consumer surplus = Area of A+B+E =((30-20) x 2000/2) = 10000

Producer surplus = Area of C+D+F =((20-10) x 2000/2) =  10000

New Consumer surplus = Area of A+B+C = 2500+5000+5000 = 12500

Increase in consumer surplus = C - E =5000-2500 = 2500

New producer surplus = Area of D = 2500

Decrease in producer surplus = Area of C + F = 5000+2500 = 7500

Deadweight loss = Net loss in social welfare = Area of E + F =((25-15) x (2000-1000)/2) = 5000

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