Economics 19th Edition by Stanley Brue, Cambell McConnell, Campbell McConnell, Sean Masaki Flynn, Sean Flynn

Exercise 4

ADVANCED ANALYSIS Assume the followingd values for Figures 5.4a and 5.4b. Q¹ = 20 bags, Q² = 15 bags. Q³ = 27 bags. The market equilibrium price is $45 per bag, The price at 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.Applythe formula for the area ofa triangle (Area = 1/2 × (× Base × Height) to answer the folquestions.what is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output level is being produced How large is the dollar value of the consumer surplus at that output level
b. What is the dollar value of the deadweightwhen output level Q² , is being produced What is the total surplus when output level Q² is being produced
c. What is the dollar value of the deadweighwhen output level Q³ is produced What is the dollar value of the total surplus when output level Q³ is produced