please explain and help me calculate correctly Consider the accompanying supply and demand graph.9-8-What is the value of consumer surplus?7-6-Supply$5-(5, 4.5)4What is the value of producer surplus?3-Demand2-1-$6.QuantityWhat is the value of total (also called social oreconomic) surplus?$Price ($) The Ministry of Misallocation has decreed that the production of widgets must be 5000 each month and the production ofgizmos must be 8000 each month. Calculate the deadweight loss in each market caused by these restrictions. Please notethe scale of the quantity axis is in thousands.Price of widgetsPrice of gizmosS100s109.90SupplySupply880770660550440330DemandDemand2201100 1 2 3 4 5 6 7 8 9 10o 2 4 6 8 10 12 14 16 18 20Quantity of widgets (in thousands)Quantity of gizmos (in thousands)What is the deadweight loss in the widgets market?What is the deadweight loss in the gizmos market?%24

“Since you have asked multiple question, we will solve the first question for you. If you want any…

Consider the accompanying supply and demand graph. 9. 8- What is the value of consumer surplus? 7- 6- Supply $ (5, 4.5) What is the value of producer surplus? Demand 2- $ 6. 8 Quantity What is the value of total (also called social or economic) surplus? $

Consider the accompanying supply and demand graph. 9. 8- What is the value of consumer surplus? 7- 6- Supply $ (5, 4.5) What is the value of producer surplus? Demand 2- $ 6. 8 Quantity What is the value of total (also called social or economic) surplus? $

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

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please explain and help me calculate correctly

Consider the accompanying supply and demand graph.
9-
8-
What is the value of consumer surplus?
7-
6-
Supply
$
5-
(5, 4.5)
4
What is the value of producer surplus?
3-
Demand
2-
1-
$
6.
Quantity
What is the value of total (also called social or
economic) surplus?
$
Price ($)

The Ministry of Misallocation has decreed that the production of widgets must be 5000 each month and the production of
gizmos must be 8000 each month. Calculate the deadweight loss in each market caused by these restrictions. Please note
the scale of the quantity axis is in thousands.
Price of widgets
Price of gizmos
S100
s10
9.
90
Supply
Supply
8
80
7
70
6
60
5
50
4
40
3
30
Demand
Demand
2
20
1
10
0 1 2 3 4 5 6 7 8 9 10
o 2 4 6 8 10 12 14 16 18 20
Quantity of widgets (in thousands)
Quantity of gizmos (in thousands)
What is the deadweight loss in the widgets market?
What is the deadweight loss in the gizmos market?
%24

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