The supply and demand for almonds are Q^D = 80

Question

The supply and demand for almonds are Q^D = 80 - 10P and Q^S = 10P, where P is price per bag and Q measures hundreds of bags per day.
a. What are the equilibrium price and quantity?
b. Calculate consumer and producer surplus.
c. Suppose the government imposes a price floor of $7 per bag. Is there a shortage or surplus of almonds? If so, what size is it?
d. Calculate consumer and producer surplus with the price floor.
e. What is the size of the deadweight loss?

Quizplus · Accepted Answer

The Answer of The supply and demand for almonds are Q^D = 80 - 10P and Q^S = 10P, where P is price per bag and Q measures hundreds of bags per day. a. What are the equilibrium price and quantity? b. Calculate consumer and producer surplus. c. Suppose the government imposes a price floor of $7 per bag. Is there a shortage or surplus of almonds? If so, what size is it? d. Calculate consumer and producer surplus with the price floor. e. What is the size of the deadweight loss?

The Supply and Demand for Almonds Are QD = 80