22. (15 points) A firm's Inverse demand is p=800-40: its inverse supply function is P = 400-40. A graph appears below. 5

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22 15 Points A Firm S Inverse Demand Is P 800 40 Its Inverse Supply Function Is P 400 40 A Graph Appears Below 5 1 (36.45 KiB) Viewed 51 times

22. (15 points) A firm's Inverse demand is p=800-40: its inverse supply function is P = 400-40. A graph appears below. 5 P 800 600 400 D Q 50 200 a. (2 points) Calculate the consumer surplus. Qs Р 4(50) - Qs = 600 3 4(50) b. (2 points) Calculate the producer surplus. QD 0.5 400 100 4(Q) 4(200) 2 C. (5 points) If the government imposes a price ceiling of $500, will this cause a shortage or surplus? Quantify the amount of the shortage or surplus. d. (6 points) Calculate the deadweight loss from the price ceiling described in part c.