Calculate the consumers surplus, producer surplus. and total surplus when no price restrictions are in place -4-9Briel MackProblem Set 31. What are consumer surplus, producer surplus, and total surplus measuring? to a current market.Total Surplus measures the gain from trade dueProducer surplus means Price minus cost, Consumer Surplus is willingness2. Assume the equilibrium quantity in a competitive market is 6 and the equilibrium price is 16. to pay minusAlso assume the highest willingness to pay is 40 and the lowest cost is 4. Calculate the consumer Price.surplus, producer surplus, and total surplus for this market. (CS)40-16 =2424 + 12 = 40-16 +16 -4 = 40-4 = (ps) 16 = 4 = 123. Describe what is meant by a market outcome being "efficient". The total Surplus is 36.outcome means by being, efficientwhen all information is complete and no cost.what a marketis4. Consider the market for corn described in the graphical model below:ThereP97is a Shilift in elasticity of Demand.1S3-deightweight loss14a) Calculate the consumer surplus, producer surplus, and total surplus when no pricerestrictions are in place.P floorQb) Calculate the consumer surplus, producer surplus, and total surplus with the price floor inplace. The price floor is of the supply is 1c) Explain if the market more efficient or less efficient with the price floor?I think it shows that the market is less efficient with the price floor,d) What is a deadweight loss? Is there a deadweight loss in the corn market without theprice floor? If yes, calculate it. No therewouldn't ble wloss without the Price floorany deadweighte) Is there a deadweight loss in the corn market with the price floor? If yes, calculate it.There isa deightweight loss in the corn marketthe price floor.with

Consumer surplus is defined as the consumer gain that arises when the maximum price that the…

Answered: Calculate the consumers surplus,…

Business

Economics

Calculate the consumers surplus, producer surplus. and total surplus when no price restrictions are in place

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 6PA

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