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I am a bit of hard time with this question, please see the below graph and answer the following questions: a. What is the numerical value for

I am a bit of hard time with this question, please see the below graph and answer the following questions:



me-graph1.PNG


a.  What is the numerical value for consumer surplus?

b.  What is the numerical value for producer surplus?

c.  If there is a $3 per unit tax placed on the producer what will be the new value of consumer surplus. What will be the new value of producer surplus.

me-graph1.PNG

Top Answer

a) consumer surplus 1/2x 8 x 4 =16 b) producer surplus... View the full answer

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Other Answers

a. Consumer surplus = $16 b. Producer surplus = $8... View the full answer

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