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(Advanced Analysis) Given the following diagrams: Q1 = 12 bags. Q2 = 7 bags. Q3 = 19 bags. The market equilibrium price point b is $46 per bag.
The price at point a is $70 and the price at point c is $10 per bag. The price at point d is $56 and the price at point e is $31 per bag. The price at point f is $67 and the price at point g is $32 per bag.
a.Apply the formula for the area of a triangle (Area = ½ × Base × Height) to answer the following questions.
b. What is the total surplus when output level Q2 is being produced??
c. What is the dollar value of the deadweight loss when output level Q3 is produced?
d. What is the dollar value of the total surplus when output level Q3 is produced??
Solve the forecast model
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