Scenario: The market for a particular video game title is shown below in demand and supply schedules, demand and supply equations, and a supply-demand figure.

Demand schedule: Qᵈ = 100 - p,
Supply schedule: Qˢ ⁼ ᵖ, where price (p) is in dollars and quantity (Q) is 1000s of games.

-Refer to the scenario above.At the original equilibrium,consumer surplus is ________,producer surplus is ________,and social surplus is ________.Show your answer in a graph.

Question

Scenario: The market for a particular video game title is shown below in demand and supply schedules, demand and supply equations, and a supply-demand figure.
  
Demand schedule: Qᵈ = 100 - p,
Supply schedule: Qˢ ⁼ ᵖ, where price (p) is in dollars and quantity (Q) is 1000s of games.
 
-Refer to the scenario above.At the original equilibrium,consumer surplus is ________,producer surplus is ________,and social surplus is ________.Show your answer in a graph.

Quizplus · Accepted Answer

At the original equilibrium, consumer surplus is $1.25 million, producer surplus is $1.25 million, and social surplus is $2.5 million. This can be seen in the graph, where the consumer surplus is the area below the demand curve and above the equilibrium price, the producer surplus is the area above the supply curve and below the equilibrium price, and the social surplus is the sum of the consumer and producer surpluses.

Scenario: the Market for a Particular Video Game Title Is