Question

Question 1 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=54.0-P and supply is given by Q=P-36.0. What is aggregate surplus in the competitive market equilibrium? No units, no rounding. Your Answer: Your Answer View hint for Question 1 Question 2 (1 point) Suppose that in a perfectly competitive market, demand is given by Q=71.0-P and supply is given by Q=P-31.0. The government imposes a per-unit excise tax of $1 on the good. What is the dead-weight loss? No units, no rounding. Your Answer: Your Answer

Answer 1

AusO ER S40-P Demond P36.0 at euilrbrim P36 2P 90 S4-45 9 anits Corsumer and prodner Iit the Sum ot tue Snplea Cowumer Supiy s the Area Cndboue the euilbnum Parke below tue demanc Crve T dthe Area abore te supply urve prooduney Surplu bepote eguilihoium prate.

equldibrim Prre 27 Demond 22 36 Cousumer Surflus S4us)x(9-0) eredurer Surfl xC4r-34)xCgo Soregate urfl 40'S40.5

(2) Demonel 4: P31 Suppl'y at egidthmum 2p.to 2 20 7-P 20 Unit Nes Supply euaon (P-1)-31 pP32 DepMoud eauilr bnum ad P-32 2P 103 2 0. fs- 32 P- 32 19.5 Unts

Suptly $1-5 40 32 30 1a Demoxd 30 Dead welgut oss +x515-51)x (20-19.5 125 x (51-S0 5x (20-195 Fo'r Dead vei'net bss FR