1 given the following supply and demand functions qd 24 -

Question

1. Given the following supply and demand functions, Qd = 24 - 0.5P and Qs = -4 + 0.5P

a. Complete supply and demand schedules below

b. Graph them on a grid below

c. Calculate the equilibrium price

d. Calculate consumer and producer surplus if the market operates at equilibrium

e. If producers limit output to 8 units and charge consumers according to their demand schedule:

1. Calculate the consumer and producer surplus
2. What has been the total welfare loss due to this action by the producers?
3. Has this nonetheless been a good move from the point of view of the producers? Explain your answer.