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 O Producer Surplus Neither O O O

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 O Producer Surplus Neither O O O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q28
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.
Economics please help me with this, with detailed explanation, thank you!
a. What is an Inferior good? Sketch an Engel curve for inferior goods and clearly label the two axes. b. Briefly explain why demand may increase as price increases? (Hint: think about substitution and income effects.) c. What is the relationship between Inferior and Giffen goods? Use a Slutsky equation to justify your statement. d. Some people may work less when their wage rates go up. Why is it the case? (Hint: think about substitution effect and endowment income effect).
Question 3
II. For the inferior good, draw and interpret a graph showing demand curve and a shift in the curve if your income increases.
1. Measuring Consumer Surplus Suppose the market demand for donuts was the following: P donuts $5 $1.50- 75 Qdon donuts a. Calculate the Consumer Surplus earned in the market when the price is $1.50 b. What happens to consumer surplus if the price drops?
1. BHP Billiton is a new global challenger. A) true B) false 2. Nonconvertible currencies are hard currencies. A) true B) false 3. The key focus of the World Bank is helping countries to stabilize foreign exchange. A) true B) false 4. A deposit of Euros held in banks in Germany is considered Eurocurrency. A) true B) false 5. A strategic global team focuses on the efficient operation of the business across the network. A) true B) false 6. Among entry strategies, low-control strategies require substantial resource commitment. A) true B) false 7. Contracting with intermediaries in the foreign market to perform export functions enables firms’ indirect exporting. A) true B) false 8. Technical support outsourcing is part of business process outsourcing (BPO). A) true B) false 9. Assume entity A (in a country with high corporate income tax) and entity B (in a country with low corporate income tax) are two subsidiaries of Company ABC. Entity A sells parts to entity B.…
13 sellers and 13 buyers are each willing to buy or sell one unit of a good, with values {$13, $12, $11, $10, $9, $8, $7, $6, $5, $4, $3, $2, $1}. If the market is competitive but the cost of market-making is $4 per transaction, the equilibrium quantity traded in the market is a. 4 b. 7 c. 9 d. 5.
Colorado. The Mead market price of a motor scooter is given by the horizontal black line at $60. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Bob, green (triangle symbols) for Cho, purple (diamond symbols) for Eric, tan (dash symbols) for Ginny, and blue (circle symbols) for Kenji. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a motor scooter at a market price of $60. (Note: If a person will not purchase a motor scooter at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) ? PRICE (Dollars per motor scooter) 160 140 120 100 80 60 40 20 0 0 1 Bob 2 Cho Eric Ginny Kenji 3 4 5 QUANTITY (Motor scooters) Market Price 6 7 8 Based on the information on the previous graph, you can tell that consumer surplus in this market will be $ Bob Cho Eric Ginny Kenji will buy motor scooters at…
Suppose there are only 3 goods in the consumer basket. Based on the following table, answer the following (show your work for at least one year): Price and quantity for consumer's basket Goods Quantity Price 2015 Price2016 Price 2017 $3.25 500 gallons $3/gallon $3.50 gas candy bar 365 packs $1.20 $1/pack $0.90 $50 internet 12 months $50/month $65 a. Calculate the cost of the market basket for all years. b. Consider 2015 as the Base Year and compute the Consumer Price Index (CPI) for each year. c. Use the CPI to calculate the inflation rate for 2017
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