Q
Subject:EconomicsPrice: Bought3
Q.2
A. Show on a demand supply graph how consumer surplus and producer surplus is defined
B. In general to evaluate welfare effects we need to consider the welfare of groups of individuals. What problem does consumer surplus pose in this regard ?
C. There are to firms in an economy facing a upward sloping supply curve in a perfectly competitive setting. Show graphically how you would find the total producer surplus in the economy.
