Consider the market for some product X that is represented in the accompanying demand-and-supply diagram. a. Calculate the total economic surplus in this market at the free-market equilibrium price and quantity. The total economic surplus is $280 per day. (Round your response to the nearest cent as needed.) b. Calculate the total economic surplus in this market when a price ceiling at $21 is in effect. The total economic surplus is $ per day. (Round your response to the nearest cent as needed.) c. After imposition of the price ceiling at $21, how many units of this good are no longer being produced and consumed per day compared to the free-market equilibrium? unit(s) of this good are no longer being produced and consumed per day compared to the free-market equilibrium. (Round your response to the nearest whole number as needed.) d. Calculate the deadweight loss that results from the imposition of the price ceiling at $21. The deadweight loss that results from the imposition of the price ceiling at $21 is $ per day. (Round your response to the nearest cent as needed.) e. Calculate the total economic surplus in this market when a price floor at $33 is in effect. The total economic surplus is $ per day. (Round your response to the nearest cent as needed)
Consider the market for some product X that is represented in the accompanying demand-and-supply diagram. a. Calculate the total economic surplus in this market at the free-market equilibrium price and quantity. The total economic surplus is $280 per day. (Round your response to the nearest cent as needed.) b. Calculate the total economic surplus in this market when a price ceiling at $21 is in effect. The total economic surplus is $ per day. (Round your response to the nearest cent as needed.) c. After imposition of the price ceiling at $21, how many units of this good are no longer being produced and consumed per day compared to the free-market equilibrium? unit(s) of this good are no longer being produced and consumed per day compared to the free-market equilibrium. (Round your response to the nearest whole number as needed.) d. Calculate the deadweight loss that results from the imposition of the price ceiling at $21. The deadweight loss that results from the imposition of the price ceiling at $21 is $ per day. (Round your response to the nearest cent as needed.) e. Calculate the total economic surplus in this market when a price floor at $33 is in effect. The total economic surplus is $ per day. (Round your response to the nearest cent as needed)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Consider the market for some product X that is represented in the accompanying demand-and-supply
diagram.
a. Calculate the total economic surplus in this market at the free-market equilibrium price and quantity.
The total economic surplus is $280 per day.
(Round your response to the nearest cent as needed.)
b. Calculate the total economic surplus in this market when a price ceiling at $21 is in effect.
The total economic surplus is $ per day.
(Round your response to the nearest cent as needed.)
c. After imposition of the price ceiling at $21, how many units of this good are no longer being produced
and consumed per day compared to the free-market equilibrium?
unit(s) of this good are no longer being produced and consumed per day compared to
the free-market equilibrium.
(Round your response to the nearest whole number as needed.)
d. Calculate the deadweight loss that results from the imposition of the price ceiling at $21.
per day.
The deadweight loss that results from the imposition of the price ceiling at $21 is $
(Round your response to the nearest cent as needed.)
e. Calculate the total economic surplus in this market when a price floor at $33 is in effect.
The total economic surplus is $ per day.
(Round your response to the nearest cent as needed.)
f. Calculate the deadweight loss that results from the imposition of the price floor at $33.
The deadweight loss that results from the imposition of the price floor at $33 is $
(Round your response to the nearest cent as needed.)
per day.
Price ($)
57.00-
51.00-
45.00-
39.00-
33.00
27.00+
21.00-
15.00-
9.00-
3.00-
0
4
12 16 20
Quantity (units per day)
24
S
D
28
✪
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