Question:
Graph A. Wheat Market
Determine the following: Show your solution.
1. What is the consumer surplus?
2. What is the producer surplus?
3. What is the economic surplus?
Answer:
1. What is the consumer surplus?
Formula: 1/2(B*H)
CS=1/2(2000*4)
CS=8000/2
Consumer Surplus=4000
2. What is the producer surplus?
Formula: 1/2(B*H)
PS=1/2(2000*2)
PS=4000/2
Graph A. Wheat Market
Determine the following: Show your solution.
1. What is the consumer surplus?
2. What is the producer surplus?
3. What is the economic surplus?
Answer:
1. What is the consumer surplus?
Formula: 1/2(B*H)
CS=1/2(2000*4)
CS=8000/2
Consumer Surplus=4000
2. What is the producer surplus?
Formula: 1/2(B*H)
PS=1/2(2000*2)
PS=4000/2