Equilibrium and Surplus in a Liver Market. The following table shows different points on the linear supply curve and linear demand curve for livers for transplant. (Related to Application 2 on page 450.)
a. Draw the two curves and show the market equilibrium. The equilibrium price is $________ , and the equilibrium quantity is _____livers.
b. On your graph, show the total surplus of the liver market the sum of consumer and producer surplus. c. Suppose the government bans the buying and selling of livers. On your graph, show the new equilibrium quantity of livers and the resulting loss in the total value of the market.