Given the following diagrams: Q1 = 16 bags. Q2 = 11 bags. Q3 = 23 bags. The market equilibrium price is $53 per bag. The price at point a is $85 per bag. The price at point c is $5 per bag. The price at point d is $63 per bag. The price at point e is $38 per bag. The price at point f is $74 per bag. The price at point g is $39 per bag. Apply the formula for the area of a triangle (Area = ½ × Base × Height) to answer the following questions.

a. What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output level Q1 is being produced? $
62.5
.

How large is the dollar value of the consumer surplus at the output level Q1? $

b. What is the dollar value of the deadweight loss when output level Q2 is being produced? $
.

What is the total surplus when output level Q2 is being produced? $

c. What is the dollar value of the deadweight loss when output level Q3 is produced? $

What is the dollar value of the total surplus when output level Q3 is produced? $

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To answer these questions, we need to calculate the areas of the triangles formed by the different price points and the supply and demand curves.

a. To find the dollar value of the total surplus at output level Q1, we need to calculate both the consumer surplus and the producer surplus.

- Consumer Surplus: Consumer surplus is the difference between the willingness to pay (represented by the demand curve) and the actual price (point a) multiplied by the quantity (Q1). The area of the triangle formed by point a, the demand curve, and the quantity Q1 represents the consumer surplus.

To calculate the consumer surplus, we use the formula for the area of a triangle: Area = 0.5 * Base * Height.
In this case, the base is the quantity Q1 and the height is the difference between the demand curve and the price at point a (willingness to pay - actual price).

Consumer Surplus at Q1 = 0.5 * Q1 * (Demand curve - Price at point a)

- Producer Surplus: Producer surplus is the difference between the actual price (point a) and the cost of production (represented by the supply curve) multiplied by the quantity (Q1). The area of the triangle formed by point a, the supply curve, and the quantity Q1 represents the producer surplus.

To calculate the producer surplus, we use the same formula for the area of a triangle: Area = 0.5 * Base * Height.
In this case, the base is the quantity Q1 and the height is the difference between the actual price at point a and the supply curve (actual price - cost of production).

Producer Surplus at Q1 = 0.5 * Q1 * (Price at point a - Supply curve)

To find the dollar value of the total surplus, we add the consumer surplus and the producer surplus.

Total Surplus at Q1 = Consumer Surplus at Q1 + Producer Surplus at Q1

b. To find the dollar value of the deadweight loss at output level Q2, we need to calculate the area of the triangle formed by the quantity Q2, the supply curve, and the demand curve at point Q2. The deadweight loss represents the loss in total surplus caused by producing at a quantity different from the allocatively efficient output level.

Deadweight Loss at Q2 = 0.5 * Q2 * (Demand curve - Supply curve)

To find the total surplus at Q2, we need to calculate both the consumer surplus and the producer surplus using the same formulas as in part a.

Total Surplus at Q2 = Consumer Surplus at Q2 + Producer Surplus at Q2

c. To find the dollar value of the deadweight loss at output level Q3, we calculate the area of the triangle formed by the quantity Q3, the supply curve, and the demand curve at point Q3.

Deadweight Loss at Q3 = 0.5 * Q3 * (Demand curve - Supply curve)

To find the total surplus at Q3, we need to calculate both the consumer surplus and the producer surplus using the same formulas as in part a.

Total Surplus at Q3 = Consumer Surplus at Q3 + Producer Surplus at Q3

Using these formulas and the given prices and quantities, you can calculate the dollar values for each of the questions.

To calculate the dollar value of the total surplus, consumer surplus, deadweight loss, and total surplus at different output levels, we need additional information. Specifically, we need the areas of the triangles formed by the price and quantity points on the demand and supply curves.