Consumers and Producers Surplus
|
Price |
Quantity Demanded |
I Quantity Supplied |
|
($ per hamburger) |
(Hamburgers per day) | |
|
0 |
500 |
0 |
|
1 |
450 |
50 |
|
2 |
400 |
100 |
|
3 |
350 |
150 |
|
4 |
300 |
200 |
|
5 |
250 |
250 |
|
6 |
200 |
300 |
|
7 |
150 |
350 |
|
8 |
100 |
400 |
|
9 |
50 |
450 |
|
10 |
0 |
500 |
Answer the following questions with respect to the table above
a) What is the minimum price that suppliers are willing to accept for the 150th hamburger?
b) What is the maximum price that consumers are willing to pay for the 150th hamburger?
c) What is the level of efficient quantity?
d) What is the Consumers surplus? What is the Producers surplus? Assume efficiency of markets.
e) At 150 hamburgers what is the deadweight loss?
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