3. The graph shows the effect of a tax imposed on soft drinks. Use this graph to answer the questions. S2 Amount of Тах A B E H Quantity of soft drinks a. Which areas in the graph represent the deadweight loss? b. Which areas in the graph represent the consumer surplus? c. Which areas in the graph represent the producer surplus? Price (dollars) P.

3. The graph shows the effect of a tax imposed on soft drinks. Use this graph to answer the questions. S2 Amount of Тах A B E H Quantity of soft drinks a. Which areas in the graph represent the deadweight loss? b. Which areas in the graph represent the consumer surplus? c. Which areas in the graph represent the producer surplus? Price (dollars) P.

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

QUESTION 3 The U.S. Market for Computers sdamertie pply curre) Domestic price writh tanif Wadd price 2.000 D domestic de mandauve) 200 Quantity (thourande of unta) 100 120 I90 Referring to the above figure, how much revenue will the US government collect as a result of the tariff on computers? a. $168 millisn Ob. $76 million OC $28 million d. $280,000
16. The graph shows the market for sandwiches, and the consumer surplus and producer surplus. 18.00- Price (dollars per sandwich) What is total surplus? Total surplus is $ If the quantity demanded of sandwiches decreases by 120 an hour at each price, the demand curve shifts leftward from Do to D₁. Draw a point at the new equilibrium price and equilibrium quantity. Draw a shape to show the new producer surplus and label it PS. Draw a shape to show the new consumer surplus and label it CS. By how much does total surplus change when demand decreases? 16.00 14.00- 12.00- 10.00- 8.00- 6.00- 4.00- 2.00- Total surplus (1) by $ S D 0.00 0 30 60 90 120 150 180 210 240 270 Quantity (sandwiches per hour) Price (dollars per sandwich) 18.00- 16.00- S 14.00- 12.00- 10.00- 8.00- 6.00- 4.00- 2.00- D₁ Do 0.00 0 30 60 90 120 150 180 210 240 270 Quantity (sandwiches per hour)
5. Refer to the diagram below: 350 300 250+ 200+ 150+ 100 50 1 3 4 Demand 50 (a) If the price of the good is 250, what is the consumer surplus? (b) The value of the good to consumers minus the cost of the good to consumers amounts to 325. What is the price of the good?
1. Describe the difference between demand and supply. 2. How does the law of demand and supply affect the market? 3. How does equilibrium occur in market? 4. What are the price controls of the government?
Suppose the demand for tomato juice falls. 1.Producer surplus in the market for tomato juice____? 2.Producer surplus in the market for tomato ____?
8. If a seller facing excess demand is unable to raise the price of the good due to a price ceiling, the seller might: a. increase the quantity supplied of the product. b. decrease the price of the product. c, increase the quality of the product. d. decrease the level of service for that product.
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?
If the demand curve for chocolate bars is downward sloping and the supply of it decreases, there is __ in consumer surplus; a. an increase, b. no change, c. it's impossible to tell what will happen to consumer surplus, d. a decrease
Answer fast... I ll rate