Consumers 'surplus Producers' Surplus , Total surplus, deadweight loss with price floor

In this video we will solve a Numerical of finding Consumers' surplus, Producers'Surplus, total surplus and DEADWEIGHT loss on account of imposition of price floor
The question is
Suppose the inverse market demand curve is
P =200-20 and inverse market supply curve
is P= 50 +Q. Suppose government imposes price
First, solve for equilibrium price of 65 and quantity 50. Then, we Use these functions to draw the demand and supply curves
Insert the floor price of 120 into the demand function to find that only 40 would be demanded at that price.
We calculate Consumers'surplus, Producers'Surplus , total surplus

Insert 40 into the supply function to find the price of 90 that corresponds to a quantity of 40. Because the price floor would reduce quantity from its equilibrium value of 50 to the new value of 40 we calculate new Consumers'surplus, Producers'Surplus , total surplus , the deadweight
#Consumersurplus
#ProducersSurplus
#Pricefloor
#TotalSurplus
#DEADWEIGHTLoss
#Equilibriumprice
#Equilibriumquantity

This video will help you to crack any
Competitive exam for Economics like UGC NTA NET ECONOMICS, GATE ECONOMICS, UPSC , Delhi School of Economics, MA ENTRANCE ECONOMICS
JAM ECONOMICS

Check our playlist
Algebra in Economics
   • Algebra in Economics  

GATE ECONOMICS
   • GATE ECONOMICS PAPER  

Mathematical Economics

   • Mathematical Economics Differentiation Que...  


Integration in ECONOMICS

   • Integration and Economics  


Matrix Algebra in Economics
   • Algebra in Economics  

GRAPHING IN ECONOMICS

   • Graphing In Economics  

Microeconomics

   • Micro Economics  
Comparative Statics in Economics

   • Comparative Statics Analysis in Economics  

INPUT OUTPUT MODEL

   • INPUT OUTPUT ANALYSIS  

IS-LM MODEL

   • IS–LM Model  


You can Join
On Facebook
https://www.facebook.com/profile.php?...
Facebook page
  / econmathss  
On Telegram
https://t.me/Hilal885

#MathematicalEconomics
#JAMECONOMICS
#ImportantQuestionsInEconomics
#MAEntranceEconomics
#GateEconomics
#QuantitativeEconomics
#EconMath
#GATEEconomics
#NETEconomics
#DSU
#KU





#MathematicalEconomics
#QuantitativeEconomics
#EconMath
#GATEEconomics
#NETEconomics
#DSU
#KU