Task: If QD = 100 - 6P and QS = 4p
1) I understand how to get the equilibrium of p=10 and Q=40 but I need to find consumer and producer surplus ...how does that get calculated?
2) How does the equilibrium change if a price floor of $12 is put in place? Calculate deadweight loss from this price floor.
3) Suppose a tax of t=$2 is attached to each unit exchanged in the market. Calculate the new market equilibrium and the deadweight loss from this change. does the tax revenue make up for the lost surplus?