Given market diagram is shown below:Demand curve D1 and D2 have been shown in the above diagram.a. Calculation of total surplus when demand is D1:In the above diagram, when demand is D1, the equilibrium price is P1 andequilibriumquantity is Q1.The area of the triangle A+B+D represents the totalconsumersurplus and area of the triangle C+E+F represents the total producer surplus.The main answer is:Total consumer surplus = A + B + D = (1/2) (9-6) (25-18) = $22.5Total producer surplus = C + E + F = (1/2) (6-3) (18-9) = $22.5Total surplus = Total consumer surplus + Total producer surplus= $22.5 + $22.5= $45Explanation:The area of the triangle A+B+D represents the total consumer surplus and area of the triangle C+E+F represents the totalproducersurplus.b. Calculation of total surplus when demand decreases to D2:In the above diagram, when demand decreases to D2, the equilibrium price is P2 and equilibrium quantity is Q2. The area of the triangle Arepresentsthe consumer surplus and area of the rectangle A+B+C+D+E represents the producer surplus.The main answer is:Total consumersurplus= A = (1/2) (9-8) (25-24) = $0.5Total producer surplus = A + B + C + D + E = 1 (24-9) = $15Total surplus = Total consumer surplus + Total producer surplus= $0.5 + $15= $15.5Explanation:The area of the triangle A represents the consumer surplus and area of the rectangle A+B+C+D+E represents the producer surplus.TO know more about thatequilibriumvisit:brainly.com/question/30694482#SPJ11...

Unlock to view answer

Unlock full access for 72 hours, watch your grades skyrocket.

For just $0.99 cents, get access to the powerful quizwhiz chrome extension that automatically solves your homework using AI. Subscription renews at $5.99/week.