00:01
So, here in question, there are two cases are given at case one, we need to find producer surplus for this.
00:09
Let's at equilibrium demands equal to supply.
00:12
So, let's put it like this 20 plus 6 q when we solve for q.
00:19
So, that will become 8 q is equal to 80 and q is 10.
00:24
Now, when we substitute the value p is equals to 100 minus 2 multiplied by 10 then 100 minus 20 it will become 80.
00:35
So, now with the 8 repeat $8 per unit exercise takes the new demand now $8 per unit tax.
00:48
So, now the new equation the new demand equation will become 100 minus 2 q plus t tax where t is a tax unit $8.
01:01
Now, let's put the equations again equal to 2 q plus 8 is equals to demand equals to supply 20 plus 6 q plus 8.
01:14
Now, let's again solve for q.
01:16
So, we got 100 minus 2 q minus 16 is equals to 20 plus 6 q plus 48.
01:26
So, from here, we got minus 8 q is equals to minus 16.
01:31
So, the q is equals to 2.
01:33
This is the new q.
01:35
Now, let's put the value again in the price substitute the value new value.
01:43
So, p is equals to 100 minus 2 multiplied by 2 plus 8 that will become 100 minus 20, which will become 80.
01:54
So, this is a new price.
01:55
Now, let's calculate the producer surplus which they ask in a question.
01:59
So, here producer surplus will be half equilibrium quantity multiplied by equilibrium price minus supply price.
02:07
So, let's put it half multiplied by equal to t which is 10 multiplied by 80 minus 20 plus 6 q when we put the value all the values.
02:23
So, we got half multiplied by 10 multiplied by 80 minus put the value of q which will become 20 plus 6 into 10 that will become 60.
02:39
Now, this is half multiplied by 10 multiplied by 80 minus 80.
02:48
So, now it will become 0.
02:50
So, we can say that producer surplus is 0...