Microeconomics
Microeconomics
2nd Edition
ISBN: 9781259813337
Author: KARLAN, Dean S., Morduch, Jonathan
Publisher: Mcgraw-hill Education,
Question
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Chapter 5, Problem 21PA
To determine

(a)

To find: The area of consumer surplus at the market equilibrium price.

To determine

(b)

To find: The area of producer surplus at the market equilibrium price.

To determine

(c)

To find: The area of consumer's loss.

To determine

(d)

To find: The area of producer's loss.

To determine

(e)

To find: The area of producer's gain.

To determine

(f)

To find:

The loss in total surplus due to increase in price above equilibrium.

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Students have asked these similar questions
Recently, the price of fuel has increased in Bangladesh. At the same time the Government of Bangladesh has been allowing several producers to start car production in Bangladesh. Assume, the effect of fuel price increase is lower that that from increased number of car producers. (a) Discuss the possible effects on the equilibrium price and equilibrium quantity in the car market. (b) Graphically explain if the quantity is not reached at the equilibrium, total surplus will not be maximum.
Q4
Assume that demand in the market for consoles is QD = 1000 - P and supply is QS = 2P - 200. a) In equilibrium, what will be the price of a consoles? How many units will sell at this price? b) What is the value of consumer surplus at equilibrium? c) What is the value of producer surplus at equilibrium? d) Suppose that the government imposed a $300 price ceiling on consoles. How many units are sold? e) What is consumer surplus now? What is producer surplus? What is the "deadweight İoss" from this policy?
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