Practice: The supply and demand curves for a product are as follows. What is producer surplus if a price floor of $21 is set?
QD = 45 – 2P
QS = -15 + P
Concept #1: Graph Intuition
Example #1: The Steps We've Done Before
Example #2: The New Steps
Practice: The supply and demand curves for a product are as follows. What is producer surplus if a price floor of $21 is set?
QD = 45 – 2P
QS = -15 + P
Practice: The supply and demand curves for a product are as follows. What is deadweight loss if a price ceiling of $2 is set?
QD = 600 – 100P
QS = -150 + 150P
