3. Consider the demand schedule for Bob: Price of bottle $7 Qd for bottle 1 $5 2 $3 3 S1 4 a) Graph the demand curve for Bob from the above demand schedule. b) If the price of a bottle of water is $4, how many bottles does Bob buy? How much consumer surplus does Bob get from his purchases? Show Bob's consumer surplus in your graph. c) If the price falls to $2, How does Bob's consumer surplus change? Show these changes in your graph.

3. Consider the demand schedule for Bob: Price of bottle $7 Qd for bottle 1 $5 2 $3 3 S1 4 a) Graph the demand curve for Bob from the above demand schedule. b) If the price of a bottle of water is $4, how many bottles does Bob buy? How much consumer surplus does Bob get from his purchases? Show Bob's consumer surplus in your graph. c) If the price falls to $2, How does Bob's consumer surplus change? Show these changes in your graph.

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

Figure 4-1 Price (dollars per ice cream cone) $3.50 O $9.00 O $1.50 3.00 O $0 2.50 $7.50 2 Figure 4-1 shows Kendra's demand curve for ice cream cones. 3 Refer to Figure 4-1. If the market price is $2.50, what is Kendra's consumer surplus? Demand Quantity (ice cream cones)
3) Suppose that the demand is described by the following function: P=397-2Q. Supply is described by P=100+0.7Q. The graphs of demand and supply are represented below 450 400 350 300 250 200 150 100 50 0 0 50 100 150 b. The equilibrium price equals space below. 200 a. On the graph above, label the axes and the lines that represent demand and supply. Show your calculations in the empty C. Calculate the consumer surplus and show your calculations below (2) Suppose that the government imposes per-unit tax of $30 per each unit sold. As a result, the consumer retail price for the product increases to $200. d. What is the quantity of product sold after the tax is imposed? Q = e. The price received by the suppliers after the tax is imposed is f. Has the consumer surplus changed after the tax is imposed? If yes, then how did it change (increased or decreased)? Shade the area that represents the consumer surplus after the tax is imposed, on the graph (1) g. The deadweight loss to the economy…
In the preceding diagram what areas represent consumers surplus at the equilibrium price of PE? At PC?
Suppose the daily demand curve for gasoline is as provided in the accompanying graph. a. Calculate the consumer surplus in the market for gasoline if the market price is $3.50. Consumer surplus = $ ___________ million Now suppose the price decreases to $2.50 per gallon. Move the price line on the graph to reflect this change, then calculate the new consumer surplus. New consumer surplus = $________million
Next question at The graph shows the demand curve for wallets and the market price of a wallet. Price (dollars per wallet) 18.00- 16.00- Draw a point that shows the value of the 30th wallet. Label it 1. 14.00- Draw a point that shows the willingness to pay for the 45th wallet. Label it 2. 12.00- Draw an arrow that shows the consumer surplus on the 45th wallet. Label it CS. 10.00- 8.00- What is the consumer surplus on the 45th wallet? 6.00- Market The consumer surplus on the 45th wallet is $. price 4.00- >>> Answer to 2 decimal places. 2.00 em 0.00 15 30 45 60 75 90 105 As Quantity (wallets per day) >>> Draw only the objects specified in the question. Ass O Time Remaining: 00:53:47 Next ced se (ECON202 s2022 online) is based on Bade/Parkin: Foundations of Microeconomics, 9e
9. a) Explain law of demand, willingness to pay and diminishing marginal benefit briefly? b) What factors cause to demand curves to shift and what is the reason for a movement along the demand curve?
7. Total economic surplus The following diagram shows supply and demand in the market for laptops. Use the black point (plus symbol) to indicate the equilibrium price and quantity of laptops. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. PRICE (Dollars per laptop) 250 225 200 175 150 125 100 75 50 25 0 0 Demand Supply 35 70 105 140 175 210 245 280 315 350 QUANTITY (Millions of laptops) Total surplus in this market is $ million. + Equilibrium A Consumer Surplus Producer Surplus (?)
Can consumer surplus be zero? If yes then in what scenario does this happen?
Marcus buys a tablet for $5,000. What determines the size of consumer surplus Marcus receives? Explain.
2) The diagram below represents the market for battery packs. If the price were currently at $28/pack there would be a: Group of answer choices surplus of 4 battery packs surplus of 20 battery packs shortage of 4 battery packs shortage of of 20 battery packs
Price ($) 42 29 20 11 A B G 6 C H N DIE I 11 I K 16 S D If price is set at $11 in the market shown in the graph, consumer surplus will consist of areas: O Quantity
Must consumers' surplus equal producers' surplus at equilibrium price? please explain