Microeconomics,, 16th Canadian Edition

(rishikesh) #1

a. At the equilibrium market price, determine the following
values:
total revenue received by sellers
consumer surplus
producer surplus
total economic surplus
b. Now suppose that sellers in this market cooperate and
restrict their total output to per day. At
the resulting price of $45 per determine each of the
same values as in part (a).
c. What is the change in consumer surplus when output is
restricted? What is the change in producer surplus?
d. What is the deadweight loss to the economy in this
market when output is restricted? Show the area of this


30 m^3
m^3 ,
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