Aggregate surplus economics problem

Posted on 2013-11-21 16:32:00 in Economics by SARA

An explanation of this problem would be most helpful. I do not understand it. Thank you :)



The market demand function for wheat is



Qd=20-2P



The market supply function is



Qs=4P-4



both quantities measured in billions of bushels per year.



a. What are the consumer surplus (CS), producer surplus (PS), and aggregate surplus (AS) at the competitive market equilibrium?



CS = $.



PS = $.



AS = $.



b. If, instead, only 6 billion bushels are bought and sold in a year, with the consumers who have the highest willingness to pay buying them and the firms that have the lowest avoidable cost selling them, what are the aggregate surplus, consumer surplus, and producer surplus? How large is the deadweight loss?



CS = $.



PS = $.



AS = $.



DWL = $.



c. If, instead, 16 billion bushels are bought and sold in a year, with the consumers who have the highest willingness to pay buying them and the firms that have the lowest avoidable cost selling them, what are the aggregate surplus, consumer surplus, and producer surplus? How large is the deadweight loss

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