Refer to the figure below depicting a $10 price floor on the market for wheat. Use this graph for part c through e.
Market for Wheat
Price (dollars)
13
12
Tools
CSpf
PSpf
11
Price Floor
S
10
DWL
9
8
7
6
D
5
0
1
2
3
4
5
6
7
8
9
10
Tons of Wheat (in thousands)
c. Indicate the consumer surplus after the price floor has been implemented.
Instructions: Use the tool provided 'CSpf' to shade in the consumer surplus, after the price floor was implimented, on the graph.
d. Indicate the producer surplus after the price floor has been implemented.
Instructions: Use the tool provided 'PSpf' to shade in the producer surplus, after the price floor was implimented, on the graph.
e. Indicate the deadweight loss associated with the price floor.
Instructions: Use the tool provided 'DWL' to shade in the deadweight loss on the graph.
The value of the deadweight loss here is: $ thousand.