Question

part 1 (1 point)
the graph below illustrates the demand and supply for pizza. the demand curve shows that some customers are willing to a pizza than others, and the supply curve shows that some producers are willing to sell pizzas for less than others.
at what price is total surplus maximized? $\boxed{}$
part 2 (2 points)
when total surplus is maximized, consumer surplus is $\boxed{}$ and producer surplus is $\boxed{}$

Explanation:

Step1: Recall economic principle

Total surplus is maximized at the equilibrium price where the demand curve intersects the supply curve.

Step2: Identify equilibrium on graph

Find the intersection - point of the demand and supply curves on the given graph to determine the equilibrium price.

Step3: Calculate consumer surplus

Consumer surplus is the area above the price and below the demand curve at the equilibrium. If the demand curve is linear, we can use the formula for the area of a triangle $\frac{1}{2}\times base\times height$.

Step4: Calculate producer surplus

Producer surplus is the area below the price and above the supply curve at the equilibrium. If the supply curve is linear, we can use the formula for the area of a triangle $\frac{1}{2}\times base\times height$.

Answer:

Part 1: The equilibrium price (where the two curves intersect)
Part 2: Calculate consumer surplus using triangle - area formula for the area above price and below demand curve at equilibrium. Calculate producer surplus using triangle - area formula for the area below price and above supply curve at equilibrium. (Since no numerical values for the graph are given, we can't provide exact dollar amounts).