In equilibrium Qd = Qs, so:
1,450 - 25P = -100 + 75P,
P = $15.5,
Q = 1,062.5 units.
If P = $4, then Q = -100 + 75×4 = 200 units.
Producer surplus in equilibrium is:
PS=0.5×1,062.5×(15.5−1.33)=7,527.81.PS = 0.5×1,062.5×(15.5 - 1.33) = 7,527.81.PS=0.5×1,062.5×(15.5−1.33)=7,527.81.
After the price ceiling is imposed:
PS=0.5×200×(4−1.33)=267.PS = 0.5×200×(4 - 1.33) = 267.PS=0.5×200×(4−1.33)=267.
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