If QD=100-6P and QS=4p
I understand how to get the equilibrium of p=10 and Q=40 but I need to
find consumer and producer surplus ...how does that get calculated?
b) How does the equilibrium change if a price floor of $12 is put in place? Calculate deadweight loss from this price floor.
c) Suppose a tax of t=$2 is attached to each unit exchanged in the market. calculate the new market equilibrium and the deadweight loss from this change. does the tax revenue make up for the lost surplus?
Correlate government revenue and deadweight loss.