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