Please <span title="help!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!">help!!!!!!!!!!!!!!!!!!!!!...</span> ?

Question

I need help with microeconomics. We are doing supply and demand and I don't understand it. Can anyone please explain to me how to do #2 on this website:http://www.collegeboard.com/prod_downloads/ap/students/economics/ap04_frq_micro.pdf

Thanks a lot!!!!

Answer 1

2:

(a)

(i) P2 (at the cross-point of the demand and supply)

(ii) Q2

(b) Q(imported) = Q3-Q1

(c)

(i) surplus is area of triangle P2-K-G

(ii) surplus is area of triangle Pw-K-H

(d)

(i) surplus is area of triangle P1-P2-G

(ii) surplus is area of triangle P1-Pw-J

(e) Net gain is area of triangle J-G-H