Lumen OHM Assessment

The graph below shows the supply and demand curves for bagels.

Graphing window shows horizontal axis: 0 to 120, vertical axis: 0 to 12. Start Graph, Color red

x	y
0	4
1	4.1
2	4.2
3	4.3
4	4.4
5	4.5
6	4.6
7	4.7
8	4.8
9	4.9
10	5
11	5.1
12	5.2
13	5.3
14	5.4
15	5.5
16	5.6
17	5.7
18	5.8
19	5.9
20	6
21	6.1
22	6.2
23	6.3
24	6.4
25	6.5
26	6.6
27	6.7
28	6.8
29	6.9
30	7
31	7.1
32	7.2
33	7.3
34	7.4
35	7.5
36	7.6
37	7.7
38	7.8
39	7.9
40	8
41	8.1
42	8.2
43	8.3
44	8.4
45	8.5
46	8.6
47	8.7
48	8.8
49	8.9
50	9
51	9.1
52	9.2
53	9.3
54	9.4
55	9.5
56	9.6
57	9.7
58	9.8
59	9.9
60	10
61	10.1
62	10.2
63	10.3
64	10.4
65	10.5
66	10.6
67	10.7
68	10.8
69	10.9
70	11
71	11.1
72	11.2
73	11.3
74	11.4
75	11.5
76	11.6
77	11.7
78	11.8
79	11.9
80	12
81	12.1
82	12.2
83	12.3
84	12.4
85	12.5
86	12.6
87	12.7
88	12.8
89	12.9
90	13
91	13.1
92	13.2
93	13.3
94	13.4
95	13.5
96	13.6
97	13.7
98	13.8
99	13.9
100	14
101	14.1
102	14.2
103	14.3
104	14.4
105	14.5
106	14.6
107	14.7
108	14.8
109	14.9
110	15
111	15.1
112	15.2
113	15.3
114	15.4
115	15.5
116	15.6
117	15.7
118	15.8
119	15.9
120	16

Start Graph, Color blue

x	y
0	8
1	7.9
2	7.8
3	7.7
4	7.6
5	7.5
6	7.4
7	7.3
8	7.2
9	7.1
10	7
11	6.9
12	6.8
13	6.7
14	6.6
15	6.5
16	6.4
17	6.3
18	6.2
19	6.1
20	6
21	5.9
22	5.8
23	5.7
24	5.6
25	5.5
26	5.4
27	5.3
28	5.2
29	5.1
30	5
31	4.9
32	4.8
33	4.7
34	4.6
35	4.5
36	4.4
37	4.3
38	4.2
39	4.1
40	4
41	3.9
42	3.8
43	3.7
44	3.6
45	3.5
46	3.4
47	3.3
48	3.2
49	3.1
50	3
51	2.9
52	2.8
53	2.7
54	2.6
55	2.5
56	2.4
57	2.3
58	2.2
59	2.1
60	2
61	1.9
62	1.8
63	1.7
64	1.6
65	1.5
66	1.4
67	1.3
68	1.2
69	1.1
70	1
71	0.9
72	0.8
73	0.7
74	0.6
75	0.5
76	0.4
77	0.3
78	0.2
79	0.1
80	0
81	-0.1
82	-0.2
83	-0.3
84	-0.4
85	-0.5
86	-0.6
87	-0.7
88	-0.8
89	-0.9
90	-1
91	-1.1
92	-1.2
93	-1.3
94	-1.4
95	-1.5
96	-1.6
97	-1.7
98	-1.8
99	-1.9
100	-2
101	-2.1
102	-2.2
103	-2.3
104	-2.4
105	-2.5
106	-2.6
107	-2.7
108	-2.8
109	-2.9
110	-3
111	-3.1
112	-3.2
113	-3.3
114	-3.4
115	-3.5
116	-3.6
117	-3.7
118	-3.8
119	-3.9
120	-4

Start Graph, Color black

x	y
0	7
1	7
2	7
3	7
4	7
5	7
6	7
7	7
8	7
9	7
10	7
11	7
12	7
13	7
14	7
15	7
16	7
17	7
18	7
19	7
20	7
21	7
22	7
23	7
24	7
25	7
26	7
27	7
28	7
29	7
30	7
31	7
32	7
33	7
34	7
35	7
36	7
37	7
38	7
39	7
40	7
41	7
42	7
43	7
44	7
45	7
46	7
47	7
48	7
49	7
50	7
51	7
52	7
53	7
54	7
55	7
56	7
57	7
58	7
59	7
60	7
61	7
62	7
63	7
64	7
65	7
66	7
67	7
68	7
69	7
70	7
71	7
72	7
73	7
74	7
75	7
76	7
77	7
78	7
79	7
80	7
81	7
82	7
83	7
84	7
85	7
86	7
87	7
88	7
89	7
90	7
91	7
92	7
93	7
94	7
95	7
96	7
97	7
98	7
99	7
100	7
101	7
102	7
103	7
104	7
105	7
106	7
107	7
108	7
109	7
110	7
111	7
112	7
113	7
114	7
115	7
116	7
117	7
118	7
119	7
120	7

Label "Quantity of bagels" at pixel coordinates (175,0).Label "Price of bagels" at pixel coordinates (0,170).Label "Demand" at (1,8-0.1). Label "Supply" at (1,4+0.1). Label "Price Floor" at (1,7).

Consumer, producer and total surpluses with no government price controls:

What is the size of consumer surplus when there are no government price controls? $

Hint

What is the size of producer surplus when there is no government price control? $

Hint

What is the size of the social surplus when there is no government price control? $

Hint

What is the size of the deadweight loss when there is no government price control? $

Hint

Consumer, producer and total surpluse with a binding Price Floor: What is the size of the consumer surplus when a Price Floor of $7 is imposed? $

Hint

Consumer, producer and total surpluses with a binding Price Floor: What is the size of the producer surplus when a Price Floor of $7 is imposed? $

Hint

Consumer, producer and total surpluses with a binding Price Floor: What is the size of deadweight loss from a Price Floor of $7? $

Hint

Consumer, producer and total surpluses with a binding Price Floor: What is the size of the social surplus when a Price Floor of $7 is imposed? $

Hint

What is the difference between the total surplus before and after a price control is imposed? Consider how this number compares to the deadweight loss. $

Hint

x	y
0	7
1	7
2	7
3	7
4	7
5	7
6	7
7	7
8	7
9	7
10	7
11	7
12	7
13	7
14	7
15	7
16	7
17	7
18	7
19	7
20	7
21	7
22	7
23	7
24	7
25	7
26	7
27	7
28	7
29	7
30	7
31	7
32	7
33	7
34	7
35	7
36	7
37	7
38	7
39	7
40	7
41	7
42	7
43	7
44	7
45	7
46	7
47	7
48	7
49	7
50	7
51	7
52	7
53	7
54	7
55	7
56	7
57	7
58	7
59	7
60	7
61	7
62	7
63	7
64	7
65	7
66	7
67	7
68	7
69	7
70	7
71	7
72	7
73	7
74	7
75	7
76	7
77	7
78	7
79	7
80	7
81	7
82	7
83	7
84	7
85	7
86	7
87	7
88	7
89	7
90	7
91	7
92	7
93	7
94	7
95	7
96	7
97	7
98	7
99	7
100	7
101	7
102	7
103	7
104	7
105	7
106	7
107	7
108	7
109	7
110	7
111	7
112	7
113	7
114	7
115	7
116	7
117	7
118	7
119	7
120	7

x	y
0	7
1	7
2	7
3	7
4	7
5	7
6	7
7	7
8	7
9	7
10	7
11	7
12	7
13	7
14	7
15	7
16	7
17	7
18	7
19	7
20	7
21	7
22	7
23	7
24	7
25	7
26	7
27	7
28	7
29	7
30	7
31	7
32	7
33	7
34	7
35	7
36	7
37	7
38	7
39	7
40	7
41	7
42	7
43	7
44	7
45	7
46	7
47	7
48	7
49	7
50	7
51	7
52	7
53	7
54	7
55	7
56	7
57	7
58	7
59	7
60	7
61	7
62	7
63	7
64	7
65	7
66	7
67	7
68	7
69	7
70	7
71	7
72	7
73	7
74	7
75	7
76	7
77	7
78	7
79	7
80	7
81	7
82	7
83	7
84	7
85	7
86	7
87	7
88	7
89	7
90	7
91	7
92	7
93	7
94	7
95	7
96	7
97	7
98	7
99	7
100	7
101	7
102	7
103	7
104	7
105	7
106	7
107	7
108	7
109	7
110	7
111	7
112	7
113	7
114	7
115	7
116	7
117	7
118	7
119	7
120	7

x	y
0	7
1	7
2	7
3	7
4	7
5	7
6	7
7	7
8	7
9	7
10	7
11	7
12	7
13	7
14	7
15	7
16	7
17	7
18	7
19	7
20	7
21	7
22	7
23	7
24	7
25	7
26	7
27	7
28	7
29	7
30	7
31	7
32	7
33	7
34	7
35	7
36	7
37	7
38	7
39	7
40	7
41	7
42	7
43	7
44	7
45	7
46	7
47	7
48	7
49	7
50	7
51	7
52	7
53	7
54	7
55	7
56	7
57	7
58	7
59	7
60	7
61	7
62	7
63	7
64	7
65	7
66	7
67	7
68	7
69	7
70	7
71	7
72	7
73	7
74	7
75	7
76	7
77	7
78	7
79	7
80	7
81	7
82	7
83	7
84	7
85	7
86	7
87	7
88	7
89	7
90	7
91	7
92	7
93	7
94	7
95	7
96	7
97	7
98	7
99	7
100	7
101	7
102	7
103	7
104	7
105	7
106	7
107	7
108	7
109	7
110	7
111	7
112	7
113	7
114	7
115	7
116	7
117	7
118	7
119	7
120	7