The table gives the demand and supply schedules for sandwiches.
|
Price
(dollars per sandwich)
|
Quantity demanded
(sandwiches per hour)
|
Quantity supplied
(sandwiches per hour)
|
|
0
|
300
|
0
|
|
1
|
250
|
50
|
|
2
|
200
|
100
|
|
3
|
150
|
150
|
|
4
|
100
|
200
|
|
5
|
50
|
250
|
|
6
|
0
|
300
|
a. What is the maximum price that consumers are willing to pay for the 200th sandwich?
b. What is the minimum price that producers are willing to accept for the 200th sandwich?
c. Are 200 sandwiches a day less than or greater than the efficient quantity?
d. If the sandwich market is efficient, what is the consumer surplus?
e. If the sandwich market is efficient, what is the producer surplus?
f. If sandwich makers produce 200 a day, what is the deadweight loss?
g. If the demand for sandwiches increases and the sandwich markers continue to produce 200 a day, describe the change in consumer surplus, producer surplus, total surplus, and the deadweight loss.