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Unformatted text preview: (c) An increase in the price of chicken feed occurs. (d) Caesar salads become trendy at dinner parties. (The dressing is made with raw eggs.) (e) A technological innovation reduces egg breakage during packing. (4) Problem 4.10 (page 87) Use the following diagram to calculate total consumer surplus at a price of $8 and production of 6 million meals per day. For the same equilibrium, calculate total producer surplus. Assuming prices remained at $8 but production was cut to 3 million meals per day, calculate producer surplus and consumer surplus. Calculate the deadweight loss from underproduction. 3 Q S 14 5 11 D 8 6 2 p...
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- Fall '10