240 220 200 180 + 160 + 140 120 100 80 60 - 40 - 20 + Demand 5 10 15 20 25 30 35 40 45 50 55 60 2 Refer to Figure. If the market equilibrium price falls from $120 to $80, then which statement could be true? i. Consumer surplus increases by $800 for the consumers initially in the market at the $120 price. ii. Consumer surplus increases by $200 for the consumers initially in the market at the $120 price. ii. Consumers entering the market after the price drop, receive $200 in consumer surplus.

240 220 200 180 + 160 + 140 120 100 80 60 - 40 - 20 + Demand 5 10 15 20 25 30 35 40 45 50 55 60 2 Refer to Figure. If the market equilibrium price falls from $120 to $80, then which statement could be true? i. Consumer surplus increases by $800 for the consumers initially in the market at the $120 price. ii. Consumer surplus increases by $200 for the consumers initially in the market at the $120 price. ii. Consumers entering the market after the price drop, receive $200 in consumer surplus.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The following graph plots a supply curve (orange line) for several sellers in the market for motor scooters in State College, a university town in Pennsylvania. Each seller has a single motor scooter for sale. The market price of motor scooters is given by the horizontal black line at $70. Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Shen, green (triangle symbols) for Valerie, purple (diamond symbols) for Antonio, tan (dash symbols) for Caroline, and orange (square symbols) for Dmitri. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at a market price of $70. (Note: If a person will not sell a motor scooter at the market price, indicate this by leaving their rectangle in its original position on the palette.) PRICE (Dollars per motor scooter) 160 140 120 100 80 60…
Assume that we are looking at the market for California wine. Assume that the initial equilibrium price is $20 and quantities are 1,000. What would be the impact on this market of a severe drought that destroys 50% of the grapes that are used to make this wine? Supply would shift to the left, a shortage would develope, prices would decrease resulting in higher prices and lower quantity of wine. Supply would shift to the left, a surplus would develope, prices would increase resulting in higher prices and lower quantity of wine. Supply would shift to the left, a shortage would develope, prices would increase resulting in higher prices and higher quantity of wine. Supply would shift to the left, a shortage would develope, prices would increase resulting in higher prices and lower quantity of wine.
In the market for off-campus apartments in San Diego, the market supply curve is QS = 300 + 1/8p The market demand curve for off-campus apartments is QD = 800 - 3/8p What is the equilibrium quantity?
Equilibrium price will decrease and equilibrium quantity will decrease in the widget market, if: A) technology used to produce widgets decreases B) the price of a complement of widgets decreases C) the price of a widget substitute decreases D) the price of a widget resource decreases
In a competitive market, suppose the introduction of a new technology in the production of electric cars makes the manufacturing process significantly cheaper and faster. How would this technological advancement likely affect the market equilibrium price and quantity of electric cars?
Consider the market for ice cream cones. Suppose that supply in this market is given by PS = Q$ and demand is given by PD = 30 – 4 × QD. Answer the following questions. Notice that the competitive equilibrium (Qº,Pe) and the point (Q%,Pº) are both on the demand curve. Use them to compute the price elasticity of demand.
THIS IS FOR MATHEMATICAL ECONOMIC : Question (2): The market for disposable cell phones: Q = 2300 – 16p and Q = 1850 + 14p. Find the equilibrium price and quantity. Suppose that a new technology has emerged that will enable firms to mass produce the cell phones at a reduced cost. Which curve will be affected and what will be the general outcome? Going back to question (b), if the new equilibrium price of a disposable cell phone is $11.25, how many disposable cell phones will be demanded by consumers? Derive the new function based on your analysis. Suppose that more consumers prefer the disposable cell phone over the smart phone because the disposable cell phone is more durable than the smart phone. This latest news comes after the fact that firms that manufacture disposable cell phones have the latest technology integrated into their production facilities. What will be the market effect? Going back to question (d), suppose that the price of a disposable cell phone is now set at…
Price A D B 100 D1 S1 D2 S2 Quantity
In a sunflower market, consumers have demand function for a sunflower given by P = -4Qd + 21 where Pis the market price of sunflower and Qd is quantity of sunflower demanded. On the other hand, suppliers of sunflower have supply function given by P = 2Qs + 3where P is the market price of sunflower and Qd is quantity of sunflower supplied. 10. Using demand and supply functions, calculate the market equilibrium price and quantity of sunflower. 11. Calculate for the consumer surplus, producer surplus, and total surplus at the market equilibrium (in values).
in a competitive market, if there should be a surplus of a product at a given price:
A baker will supply 17 jumbo cinnamon rolls to a cafe at a price of $3.91 each. If she is offered $3.15, then she will supply 4 fewer rolls to the cafe. The cafe's demand for jumbo cinnamon rolls is given by p = D(x) = -0.48x + 8.05. What is the equilibrium point? ___ rolls at a price of $ ___ each
Answer the question based on the given supply and demand data for wheat. Bushels Demanded Per Month Price Per Bushel Bushels Supplied Per Month 45 $ 5 64 50 4 60 56 3 56 61 2 52 67 1 48 Equilibrium price in this market is