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finished pset5

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Rushil Umaretiya 2024-04-30 21:42:49 -04:00
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pset5/pset5.fdb_latexmk
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pset5/pset5.log
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pset5/pset5.tex
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@ -322,8 +322,8 @@ In the short run, the marginal cost to Martin to use one of his washing machines
For producer and consumer surplus, we can use the following formulas:
\begin{align*}
PS &= \frac{1}2 \times \text{Quantity} \times (\text{Price} - \text{Marginal Cost}) \\
PS &= \frac{1}{2} \times 70 \times (15 - 1) \\
PS &= 490 \\
PS &= \times 70 \times (15 - 1) \\
PS &= 980 \\
CS &= \frac{1}2 \times \text{Quantity} \times (\text{Maximum Willing to Pay} - \text{Price}) \\
CS &= \frac{1}{2} \times 70 \times (29 - 15) \\
CS &= 490 \\
@ -338,7 +338,7 @@ In the short run, the marginal cost to Martin to use one of his washing machines
DWL &= 490
\end{align*}
It seems that we've found that producer surplus, consumer surplus, and deadweight loss are all equal to \$490.
It seems that we've found that consumer surplus and deadweight loss are equal to \$490, while producer surplus is equal to \$980.
\end{enumerate}