Quiz 9 Consumer's and Producer's Surplus
Figure 7-24. The equilibrium allocation of resources is
efficient because total surplus is maximized at the equilibrium.
Figure 7-24. At equilibrium, total surplus is
$54.
Figure 7-24. At equilibrium, consumer surplus is
$18.
Figure 7-23. The equilibrium price is
P2.
Figure 7-24. At equilibrium, producer surplus is
$36
Figure 7-24. At equilibrium, total surplus is measured by the area
ABD.
Figure 7-24. At equilibrium, consumer surplus is measured by the area
AFB
Figure 7-24. If the government imposes a price floor at $18, then consumer surplus is
AGH.
Figure 7-24. At equilibrium, producer surplus is measured by the area
BDF.
Figure 7-24. If the government imposes a price ceiling at $12, then producer surplus is
CDI.
Figure 7-24. If 6 units of the good are produced and sold, then
efficiency is achieved in this market. the marginal value to buyers equals the marginal cost to sellers. the sum of consumer surplus and producer surplus is maximized.
Figure 7-24. If 10 units of the good are produced and sold, then
the marginal cost to sellers exceeds the marginal value to buyers.
Figure 7-24. If 6 units of the good are produced and sold, then
the sum of consumer surplus and producer surplus is maximized.
Figure 7-24. If 4 units of the good are produced and sold, then
total surplus is not maximized.