BRYANT ECO113 - Consumer, Producer & Total Surplus And Deadweight

ECO113 Consumer, Producer & Total Surplus And Deadweight Loss

Figure 1

1. Let demand for good X be given by the functionqd=160-4p and supply be given by qs=2p-20.

a. Find the equilibrium price and quantity of good X. (4 possiblepoints)

b. Find the Consumer Surplus, Producer Surplus, and Total Surplus. (10 possiblepoints)

2. Let demand for good Y be given by the functionqd=480-4p and supply be given by qs=4p-80.

a. Find the equilibrium price and quantity of good Y. (4 possiblepoints)

 b. Find the Consumer Surplus, Producer Surplus, and Total Surplus. (10 possiblepoints)

c. Suppose there is a government set maximum price of $50. Find the Consumer Surplus, Producer Surplus, Total Surplus, and Deadweight Loss given the price control. (10 possiblepoints)

d. Suppose there is a government set minimum price of $50. Find the Consumer Surplus, Producer Surplus, Total Surplus, and Deadweight Loss given the price control. (2 possiblepoints)