Answer Happy

3 arded d tes ADVANCED ANALYSIS Assume the following values for the diagrams below: Q₁-20 bags. 0₂-15 bags. 03-27 bags. The market equilibrium price is $70 per bag. The price at point a is $110 per bag. The price at point cis $10 per bag. The price at point dis $80 per bag. The price at point e is $55 per bag. The price at point fis $91 per bag. The price at point g is $56 per bag. Apply the formula for the area of a triangle (Area = ½ x Base x Height) to answer the following questions. Price (per bag) (a) Efficlericy loss from underproduction Quantity (baos) D Price (per bag) (b) Efficiency loss from overproduction Quantity (baos) D

d a. What is the dollar value of the total surplus (=producer surplus + consumer surplus) when the allocatively efficient output level is produced? $ 1,000.00 What is the dollar value of the consumer surplus at that output level? $ 400.00 b. What is the dollar value of the deadweight loss when output level Q2 is produced? $62.50 What is the total surplus when output level Q2 is produced? $750.000 c.What is the dollar value of the deadweight loss when output level Q3 is produced? $122.50 What is the dollar value of the total surplus when output level Q3 is produced? $877.50