Homework Answers
QUESTION 2 :
CUNSUMER WILLING TO PAY = $35 AND ACTUALY PAY =$23 ,
THAN CONSUMER SURPLUS = WILLING TO - ACTUAL PAY
(HENCE CONSUMER SURPLUS = $35 - $23 = $12.)
QUESTION 3 :
PRODUCER WILLING TO SALE = $8 AND ACTUALY SALE = $23,
PRODUCER SURPLUS = ACTUALY SALE - WILLING TO SALE
(HENCE PRODUCE SURPLUS = $23 - $8 = $15.)
QUESTION 4 :
TOTAL GAIN OF CONSUME = SURPLUS PRICE* QUANTITY
TOTAL GAIN OF COSUMER = $12*4 = $ 48(TH).
TOTAL GAIN OF PRODUCER = SURPLUS PRICE * QUANTITY
TOTAL GAIN OF PRODUCER = $15*4 = $60(TH).
T
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