1. Welfare analysis - Basic concepts Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Producer Surplus Consumer Statement Surplus Neither Even though I was willing to pay up to $111 for a used laptop, I bought a used laptop for only $106. I paid $61 for a used textbook last week. This week, the same store is selling textbooks for $59. I sold a watch for $56, even though I was willing to go as low as $50 in order to sell it.

1. Welfare analysis - Basic concepts Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Producer Surplus Consumer Statement Surplus Neither Even though I was willing to pay up to $111 for a used laptop, I bought a used laptop for only $106. I paid $61 for a used textbook last week. This week, the same store is selling textbooks for $59. I sold a watch for $56, even though I was willing to go as low as $50 in order to sell it.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Welfare analysis: Basic concepts Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Statement Consumer Surplus Producer Surplus Neither Even though I was willing to pay up to $143 for a used laptop, I bought a used laptop for only $138. I sold a watch for $62, even though I was willing to go as low as $52 in order to sell it. Even though I was willing to pay up to $70 for a used textbook and even though the seller was willing to go as low as $57 in order to sell it, we couldn't reach a deal because the government imposed a price ceiling of $51 on the sale of textbooks.
2. Individual demand and consumer surplus Consider the market for antique cars. The market price of each antique car is $180,000, and each buyer demands no more than one antique car. Suppose that Jake is the only consumer in the antique car market. His willingness to pay for an antique car is $315,000. Based on Jake's willingness to pay, the following graph shows his demand curve for antique cars. Shade the area representing Jake's consumer surplus using the green rectangle (triangle symbols).
Table C Buyer Willingness to Pay (Dollars ) Kevin 25 Sasha 30 Erica 35 Chen 45 Refer to Table C. If the price is $27, then consumer surplus in the market is $55, and Erica and Chen purchase the good. $ 90, and Kevin and Sasha purchase the good. $29, and Sasha, Erica, and Chen purchase the good. $60, and Kevin, Sasha, Erica, and Chen purchase the good.
To economists, the term "consumer surplus" means: Select one: a. the difference between the price a consumer is willing to pay and the price that suppliers are willing to accept. b. the excess money consumers have left over after purchasing goods. c. the consumer's net benefit from trading. d. the difference between the price a consumer is able to pay and willing to pay.
7. Consumer surplus for an individual and a market The following graph shows Shen's weekly demand for apple pie, represented by the blue line. Point A represents a point along his weekly demand. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line. PRICE (Dollars per slice) PRICE (Dollars per slice) 7.50 0.75 6.00 4.50 3.75 7.50 3.00 6.75 2.25 6.00 1.50 5.25 Demand 0.75 4.50 0 3.75 3.00 2.25 1.50 0.75 0 From the previous graph, you can tell that Shen is willing to pay S for his 8th slice of apple pie each week. Since he has to pay only $3.00 per slice, the consumer surplus he gains from the 8th slice of apple pie is S 5.25 Demand Suppose the price of apple pie were to fall to $2.25 per slice. At this lower price, Shen would receive a consumer surplus of S slice of apple pie he buys. The following graph shows the weekly market demand for apple pie in a small economy. 0 Price Use the purple point (diamond symbol) to shade the area representing consumer…
Macmillan Learning (Table: Consumer Surplus and Theater Tickets) The table Consumer Surplus and Theater Tickets shows each student's willingness to pay for a ticket to see Hamilton on Broadway. Assume that each student wants to buy one ticket. If the box office price of a ticket for Hamilton is $50, and there is no other market for tickets, the total consumer surplus for the five students is: Table: Consumer Surplus and Theater Tickets Student Willingness to Pay Leonardo $150 Amina 125 Phoebe 105 Kevin 60 Anastasia 25 $100. $230.
6. Consumer Surplus Valerie buys an iPhone for $240 and gets a consumer surplus of $160. Her willingness to pay for an iPhone is $ If she had bought the iPhone on sale for $180, her consumer surplus would have been $ If the price of the iPhone had been $450, her consumer surplus would have been $
q21- If Amy is willing to pay $800 for a new dress but is able to buy the dress for $600, her consumer surplus is: Select one: a. $600 b. $200 c. $800 d. $1400
Lesson 6- Individual and Market Demand Question 6
1. Welfare analysis: Basic concepts Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Consumer Surplus Statement I sold a used record for $26 on OfferUp last week. The next day, someone messaged me offering $57 for it. Even though I was willing to pay as much as $174 for a polaroid camera, I bought a polaroid camera for just $169. I sold a swimsuit for $57, even though I was willing to accept as little as $52 in exchange for it. O Producer Surplus O O Neither O
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