Assume that Parker Co. will receive SF200,000 in 360 days. Assume the following interest rates: U.S. Switzerland 360-day borrowi
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Answer: hello your question is incomplete attached below is the missing information
Answer :
$900
$600
<u>Given the new price of $4 by Government </u>
quantity demanded = 400 units
quantity supplied = 150 units
quantity bought and sold = 150 units
- $975
- $150
- $375
Explanation:
Consumer surplus ( area below demand curve and above $300
= Area of triangle = 0.5 * base * height
= 0.5 * 300 ( 12 - 6 ) = $900
producer surplus ( area above supply curve and below $300
= Area of the triangle = 0.5 * 300 ( 6-2 ) = $600
<u>Given the new price of $4 by Government </u>
quantity demanded = 400 units
quantity supplied = 150 units
quantity bought and sold = 150 units
Consumer surplus ( area of triangle + area of rectangle )
= 0.5 * 150 * ( 12-9 )+ L*B
= 0.5 * 150 * ( 3 ) + 150 * ( 9 - 4 ) = $975
producer surplus ( Area of triangle )
= 0.5 * 150 * (4-2) = $150
deadweight loss ( area of triangle )
= 0.5 * ( 300 - 150 ) ( 9-4 )
= $375
