Show the consumer surplus. Show the producer surplus.
Suppose that a price ceiling of $12 was imposed. How would this change the consumer and producer surplus? Suppose a price floor of $16 was imposed. How would this change the consumer and producer surplus?© BrainMass Inc. brainmass.com October 10, 2019, 1:00 am ad1c9bdddf
For diagrams, look at the attached files.
Initially, equilibrium price = $14 and quantity = 15 units.
CS = 1/2 x 6 x 15 =45
PS = 1/2 x 6 x 15 =45
[to find point D in ss curve,look ...
The consumer and producer surpluses are presented. How the change in the consumer and producer surplus are determined is given.