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Assignment in attachment 1. The graph below represents the market for flank steak in a specific town. Calculate the value of consumer surplus:

July 6, 2025

Assignment in attachment

1. The graph below represents the market for flank steak in a specific town. Calculate
the value of consumer surplus:

A. When the market price is allowed to prevail, and
B. When the town passes a law setting a price ceiling for flank steak of $13

per pound, what is the value of the deadweight loss after the town passes
that law?

2. The demand and supply equations listed below describe the market for high-quality,
one-hour impressions of Elvis Presley. Graph this market, and determine

A. the market clearing price (P),
B. the market clearing quantity, and
C. total economic surplus when the market clearing price is charged.

• QD = 5000 – 100P
• QS = -1000 + 50P
3. The figure below represents the market’s demand and supply for packs of cigarettes.

Use the diagram to answer the following questions.

A. How much is the government tax on each pack?
B. What portion of the unit tax is paid by consumers?
C. What portion of the unit tax is paid by producers?
D. What is the quantity sold after the imposition of the tax?
E. What is the after-tax revenue per pack received by producers?
F. What is the total tax revenue collected by the government?
G. What is the value of the deadweight loss of the tax?

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