Economics Homework Solutions
#20780
Calculating Consumer and Producer Surplus and Deadweight Loss
a)Calculate total consumer surplus at a price $8 and production of 6 million meals per day.
b)For the same equilibrium, calculate total producer surplus
If price remained at $8 but production were cut to 3 million meals per day:
c)Calculate Producer Surplus and Consumer Surplus
d)Calculate the deadweight loss from underproduction
My answer:
a)24CS 1/2bh
b)24PS 1/2bh
c)12CS 1/2bh 12PS 1/2bh
d)12DW
I'm rather lost in this subject of microeconomics. An explanation would be helpful, so I could apply it to my other problem sets. What am I missing?
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