Home > Microeconomics > Practice on Welfare Economics

Practice on Welfare Economics

sample

The equilibrium price is $___ and the equilibrium quantity is ___.

At the equilibrium price, consumer surplus is $___, producer surplus is $___, and total surplus is $___.

Assume demand increases and as a result, the equilibrium price increases to $22 and equilibrium quantity increases to 110.

The increase in producer surplus due to new producers entering the market would be equal to $___. The increase in producer surplus to producers already in the market would be equal to $___. Therefore, the increase in producer surplus would be equal to $___.

The answers can be found here. But before you check the answers, compare your answers with a classmate! Try to make sure you understand how to work the problem forward. Working backward from the answer is easy by comparison.

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Categories: Microeconomics
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