How large is dollar value of consumer surplus at output

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Assume the following values for figure 5.4a and 5.4b. Q1=20 bags. Q2=15 bags. Q3=27 bags. The markets equilibrium price is $45 per bag. The prices at a is $85 per bag. The price at c is $5 per bag. The price at f is $59 per bag. The price at g is $31 per bag. Apply the formula for the area of a triangle (Area= 1/2 x base x height) to answer the following questions.

What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output level is being produced? How large is the dollar value of the consumer surplus at that output level?

Reference no: EM13237866

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How large is dollar value of consumer surplus at output : Assume the following values for figure 5.4a and 5.4b. Q1=20 bags. Q2=15 bags. Q3=27 bags. The markets equilibrium price is $45 per bag. The prices at a is $85 per bag. The price at c is $5 per bag.

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