Consider a market where demand is D: P = 30 - Q and supply is S: P = 0.5Q.
1. Equilibrium quantity Qe is
a. $17
b. $18
c. $19
d. $20
2. Equilibrium is price Pe
a. 10
b. 11
c. 12
d. 13
3. Consumer surplus CS is
a. $199
b. $200
c. $201
d. $202
4. Producer surplus PS is
a. $98
b. $99
c. $100
d. $101
5. Total surplus TS is
a. $220
b. $300
c. $323
d. $444
6. When the government imposes a price floor = $20, disequilibrium between quantity demanded and quantity supplied results in
a. Deficit = 10
b. Surplus = 10
c. Deficit = 30
d. Surplus = 30
7. Total surplus TS' with the price floor is
a. $220
b. $225
c. $230
d. $235