Answer Happy

Suppose the supply and demand schedules for cell phones are as follows: Price $2 $3 $4 $5 $6 $7 $8 $9 $10 $11 $12 Demand 11 10 9 8 7 6 5 4 3 2 1 Supply 1 2 3 4 5 6 7 8 9 10 11 The initial equilibrium price is $7 and the initial equilibrium quantity is 6 units. (Enter your responses as integers.) Find consumer surplus, producer surplus, and total surplus in the cell phone market. Consumer surplus is $15, producer surplus is $15, and total surplus is $30. (Enter your responses as integers.) Suppose the government sets a maximum price (that is, a price ceiling) of $5. With the price ceiling, the new market price is $5 and the new quantity traded is 4 units. (Enter your responses as integers.) Find consumer surplus, producer surplus, and total surplus now that there is a price ceiling of $5. Consumer surplus is $ 22, producer surplus is $ 6, and total surplus is $28. (Enter your responses as integers.) Deadweight loss is $ (Enter your response as an integer.) Now suppose instead that the government sets a minimum price (that is, a price floor) of $9. With the price floor, the new market price is $ and the new quantity traded is Find consumer surplus, producer surplus, and total surplus now that there is a price floor of $9. Consumer surplus is $ producer surplus is $ and total surplus is $ Deadweight loss is $ (Enter your response as an integer.) units. (Enter your responses as integers.) (Enter your responses as integers.)