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More Consumer and Producer Surplus Practice Consumer Surplus I’m selling bags of candy in class. Below is the demand schedule for candy (assume I asked everyone for this information): Price $10 8 6 4 2 1 0 Quantity 5 12 20 25 29 32 35 1. Suppose the market price of candy is $4. a. How many people would buy candy? b. Calculate total consumer surplus when the price of candy is $4. 2. Suppose the market price decreases to $2. a. How many people would buy candy now? b. Calculate total consumer surplus when the price of candy is $2. Producer Surplus Imagine a business that produces ceramic pigeons (hey, maybe someone likes that sort of thing). Their supply schedule is below: Price $50 45 40 35 30 25 20 Quantity 100 80 68 58 45 32 25 1. Suppose the market price of ceramic pigeons is $35. a. How many pigeons would be sold? b. Calculate the total producer surplus when the price of pigeons is $35. 2. Suppose the market price increases to $40. a. How many pigeons would now be sold? b. Calculate the total producer surplus when the price of pigeons is $40.