Assume the following values,Q1=20 bags, Q2= 15 bags, Q3= 27 bags. The market equ

Question

Assume the following values,Q1=20 bags, Q2= 15 bags, Q3= 27 bags. The market equilibrium price is $45 per bag. The price as a is $85 per bag. The price at c is $5 per bag. The price at f is $59 per bag. The price at g is $31 per bag. Apply the formula for the area of a triangle (Area= 1/2 x Base x Height ). What is the dollar value of the total surplus ( producer surplus plus consumer surplus) when the allocatively efficent output level is produced based on the consumer surplus at the output level ?

Explanation / Answer

In this case, we use the formula to calculate PS and CS and TS is the sum of these PS=1/2(85-45)(27-20)=140 CS=1/2(45-5)(20-15)=100 TS=100+140=240 Hope this helps

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.