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  • CW#4

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    Israel Mora
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    The document discusses two market equilibriums. The first equilibrium has a price of $10 and quantity of 100 CDs per month, with consumer surplus of $500 and producer surplus of $250. The second equilibrium has a price of $6, quantity of 300 which is below efficient quantity, consumer surplus of $1,012.50, producer surplus of $1,012.50, and deadweight loss of $225.

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    The document discusses two market equilibriums. The first equilibrium has a price of $10 and quantity of 100 CDs per month, with consumer surplus of $500 and producer surplus of $250. The second equilibrium has a price of $6, quantity of 300 which is below efficient quantity, consumer surplus of $1,012.50, producer surplus of $1,012.50, and deadweight loss of $225.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    11 views1 page

    CW#4

    Uploaded by

    Israel Mora
    The document discusses two market equilibriums. The first equilibrium has a price of $10 and quantity of 100 CDs per month, with consumer surplus of $500 and producer surplus of $250. The second equilibrium has a price of $6, quantity of 300 which is below efficient quantity, consumer surplus of $1,012.50, producer surplus of $1,012.50, and deadweight loss of $225.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    CW #4

    2. a. equilibrium price is $10, and the equilibrium quantity is 100 cd a month


    b. consumers paid $1,000
    c. consumer surplus $500
    d. producer surplus $250
    e. $10 for 100 cd = $1,000 producer surplus $250 $1,000 - $250 = $750
    f. 100 CD a month

    4. a. $6
    b. $3
    c. 300 is less than efficient quantity
    d. Consumer surplus $1,012.50
    e. Producer surplus $1,012.50
    f. Deadweight loss $225

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