The demand and supply for Fuji apples are given by QD = 17,500 - 25P and QS = 10P, where P is the price per pound and Q is the pounds of apples. What is the consumer surplus and producer surplus at the equilibrium?
A. CS = $500,000; PS = $1,250,000
B. CS = $750,000; PS = $1,250,000
C. CS = $500,000; PS = $750,000
D. CS = $1,250,000; PS = $500,000
The market for plywood is characterized by the following demand and supply equations: QD = 12,000 - 120P and QS = 40P, where P is the price per sheet of plywood and Q measures the quantity of plywood.
What is the size of the deadweight loss if the government imposes a price ceiling of $54 per sheet of plywood?
A. $10,460
B. $11,760
C. $8,975
D. $12,220
The demand and supply of iPhones in Texas is given by QD = 15,000 - 15P and QS = 5P - 500, where P is the price per phone and Q is the number of phones (in thousands).
If the Texas government levies a $10/unit tax on buyers, what is the size of the deadweight loss?
A. $187,500
B. $183,500
C. $199,500
D. $192,500