The graph shows the market for game consolesSuppose 1 million game consoles a year are being producedDraw the deadweight loss on game consolesSuppose the quantity of game consoles produced is 1 million and the price is the equilibrium priceCalculate the consumer surplus, producer surplus, and deadweight lossThe consumer surplus is 5The producer surplus is 5The deadweight loss ismillion.millionmillion000500-4004200Price (dolars per game console)30041003003Quantity (millions of game consoles per year)C

The consumer surplus is defined as the benefits that are reaped by the consumer in the competitive…

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The consumer surplus is S The producer surplus is 5 The deadweight loss is S milion. million million

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

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Question

The graph shows the market for game consoles
Suppose 1 million game consoles a year are being produced
Draw the deadweight loss on game consoles
Suppose the quantity of game consoles produced is 1 million and the price is the equilibrium price
Calculate the consumer surplus, producer surplus, and deadweight loss
The consumer surplus is 5
The producer surplus is 5
The deadweight loss is
million.
million
million
000
500-
4004
200
Price (dolars per game console)
3004
100
300
3
Quantity (millions of game consoles per year)
C

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