Assignment 71. Suppose the government provides a subsidy to the monopoly. Illustrate: (1) consumer surplus; (H)producer surplus; (i) government cost; and (iv) social surplus with the subsidy.P Market dendcuneMC wiwhityMC wih tdy2. Consider a market with a monopoly shown in the figure below. Suppose the government provides asubsidy to cosumers that achieves the efficient outcome. Use diagrams to illustrate: (1) consumersurplus; (i) producer surplus; (ii) government cost; and (iv) social surplus with this subsidy.3. Consider a market with a monopoly. The market demand curve, as well as the monopoly's marginalrevenue and marginal cost curves are shown below. The shaded area indicates the producer surplus atthe monopoly outcome. Find another area that also represents the producer surplus at the monopolyoutcome.

“Since you have asked multiple questions, we will solve the first (first three sub-parts for)…

Answered: 1. Suppose the government provides a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Use the diagram below to answer the following questions. Assume an initial market price of $4. a. Identify the initial area of consumer surplus (CS1) when the market price is $4. Next, assume that supply decreases and the market price rises to $5. Draw the new supply curve and then identify the new area of consumer surplus (CS2). Instructions: (1) Use the tool provided 'CS, to identify the initial area of consumer surplus. This will drop a small triangle with three endpoints onto the graph. Drag the endpoints to the appropriate position to identify the initial area of consumer surplus. (2) Then use the tool provided 'S2' to draw the new supply curve. (3) Use the tool provided 'CS2' and follow the same process as before to identify the second area of consumer surplus. $10 Tools $9 $8 cs, CS2 $7 $6 S2 $5 $4 $3 $2 Noxt Price
Given below is a diagram showing the relationship of Internet providers price and the number of subscribers. Compute the Consumer surplus. * 3000 1600 secPE
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Figure 3 iPrice 110 100 90 80 30 Demand 50 45 40 30 20 10 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 Luentity Refer to Figure 3. If 50 units of the good are bought and sold, then the marginal cost to sellers is equal to the marginal value to buyers. the marginal value to buyers is greater than the marginal cost to sellers. the marginal cost to buyers is greater than marginal value to sellers. d.producer surplus is less than consumer surplus.
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Figure 8-5 Suppose that the government imposes a tax of P3 - P1. P4 P3 P2 Pl Price F. 4 CO OA. O F G D+H. 02 OC+H. 2 H I Q1 Refer to Figure 8-5. The tax causes a reduction in producer surplus that is represented by area Supply Demand Quantity
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b. $60. c. $70. Figure 15-22 The diagram depicts the market situation for a monopoly pastry shop called Bearclaws. Price 24- 22 20 18 16 O d. $14. 14 12 10 8 6 4 2- 0 0 MC MR 20 40 60 80 100 120 ATC AVC Refer to Figure 15-22. Based upon the information shown, what is the deadweight loss created by Bearclaws? a. $140. D 140 Quantity
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80 50 A E L Sty MN 500 C T M D P 1000 Dus 700 Note: A, B, ,P represent each area section. In the Insulin market, the government decides to regulate a price with the ceiling prince $50.00. With this regulation, where are the area of producer surplus? OL O A+B O E+F+L OB+F

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1. Suppose the government provides a subaidy to the monopoly. Ilustrate (0) conaumer surplus, () producer surplu; () government cost; and (iv) social surplus with the subsidy. P Ma ad MC wi