SECTION A QUESTION ONE: Use the diagram below to calculate total consumer-surplus at a price of $8 and production of 8 Million metric tons of barley per day. For the same equilibrium calculate total producer-surplus. If price remained at the $8 but production was cut to 4 million metric tons per day, calculate producer-surplus and consumer-surplus. Also, carefully calculate the deadweight loss due to under production. $14 12 10 8 4 8 10 S D Q

SECTION A QUESTION ONE: Use the diagram below to calculate total consumer-surplus at a price of $8 and production of 8 Million metric tons of barley per day. For the same equilibrium calculate total producer-surplus. If price remained at the $8 but production was cut to 4 million metric tons per day, calculate producer-surplus and consumer-surplus. Also, carefully calculate the deadweight loss due to under production. $14 12 10 8 4 8 10 S D Q

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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