Consider the market for some product X that is represented in theaccompanying demand-and-supply diagram.a. Calculate the total economic surplus in this market at the free-marketequilibrium price and quantityThe total economic surplus is $ 120 per day(Round your response to the nearest cent as needed)b. Calculate the total economic surplus in this market when a price ceilingat $7 is in effectThe total economic surplus is $90 per day.(Round your response to the nearest cent as needed)c. After imposition of the price ceiling at $7, how many units of this good areno longer being produced and consumed per day compared to thefree-market equilibrium?unit(s) of this good are no longer being produced and consumed perday compared to the free-market equilibrium(Round your response to the nearest whole number as needed)Price ($)19.0017.0015.0013.00-11.00-9.00-7.00-5.003.00-1.00-010152025Quantity (units per day)30SD35G

Consumer surplus and Producer Surplus The gap between a consumer's willingness to pay and their…

Answered: Consider the market for some product X…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

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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A recent study found that the demand and supply schedules for financial calculators are as follows: Price/calculators Quantity Demanded Quantity Supplied 20 160 40 40 140 60 60 120 80 80 100 100 100 80 120 120 100 Co an Coll 80 60 40 D. 20 40 60 80 100 120 140 160 a) Determine: Price of Equilibrium_ and Quantity of Equilibrium b) Determine the effect of $60 Price Ceiling. Is it binding? Why? Will it cause Shortage or Surplus? And by how much? c) Determine the effect of $120 Price Floor. Is it binding? Why? Will it cause Shortage or Surplus? And by how much?
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1. Here is the demand for coconuts: P            3             4           5            6           7           8           9           11           13           16           20 QD          1100      1000      900      800      700      600      500        400        300        200        100 And here is supply P            3           4           5             6         7            8          9            10          11        12             13 QS           100        200        300        400        500        600        700        800        900        1000       1100 Identify the equilibrium price, quantity, consumer and producer surplus and show them on a graph. The graph should be pretty simple here, the main issue is finding the numbers for consumer and producer surplus. Again, let me reiterate: I WANT NUMBERS FOR CONSUMER AND PRODUCER SURPLUS! Furthermore, I want you to do this the way that I do. In other words, calculate it like it's a bunch of…

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