Department of Economics

PEPF 401: SS2019

Tutorial 2
Dr. Hebatallah Ghoneim
Sheet 2: Fundamental Economic Concepts Continue
Problem 1:

Initial equilibrium price = $2.00 & Quantity = 300 hamburgers per month.

1. Shade consumer surplus and producer surplus and social surplus at equilibrium.
2. Suppose the quantity supplied is restricted by government regulation to 200 units per
month. What is the new price?

Problem 2:

1- Which of the indicated prices are binding price ceiling and which is not? What is the
effect of the binding price ceiling?
2- Which of the indicated prices are binding price floor and which is not? What is the effect
of the binding price floor?
3- Shade the deadweight loss at price floor equals 14.
Problem 3:
According to the below Graph:
1- What is the amount of taxes imposed in this market?
2- What is the price paid by the consumer after taxes and received by producer after taxes?
3- What is the amount of taxes paid by consumer and that paid by sellers?