Answered: 4 3 2 1 D

Business

Economics

4 3 2 1 D

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Use the following figure to answer the question: What is the consumer surplus in this market when there is a price floor created at the "price above equilibrium" line? Price A B C D E F Supply Price above equilibrium Demand Quantity A+B (area above equilbrium price and below demand, up to the quantity with the restriction) O (area below demand and above the price above the equilbrium line) O A+B+E (area under the demand above the equilbrium price) O A+B+C (area under the demand over to the quantity resulting from regulation)
D(x) is the price, in dollars per unit, that consumers are willing to pay for x units of an item, and S(x) is the price, in dollars per unit, that producers are willing to accept for x units. Find (a) the equilibrium point, (b) the consumer surplus at the equilibrium point, and (c) the producer surplus at the equilibrium point. D(x)=(x−9)^2, S(x)=x^2+6x+57
A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls. Your friend's monthly demand for minutes of calling is given by the equation Qp = 150 - 50P, where P is the price of a minute. With Provider A, the cost of an extra minute is With Provider B, the cost of an extra minute is S Given your friend's demand for minutes and the cost of an extra minute with each provider, if your friend used Provider A, he would talk for minutes, and if he used Provider B, he would talk for minutes. This means your friend would pay S for service with Provider A and S for service with Provider B. Use the following graph to draw your friend's demand curve for minutes. Then use the green triangle to help you answer the questions that follow. Note: Yo U will not be graded on an. changeS Vou mako to tha 喜G
The market for soccer balls is composed by 4 firms. Consider the following information on the quatity supplied at different prices: When the price for a ball is $25, the supply of firm 1 is 5, the supply of firm 2 is 2, the supply of firm 3 is 3, and the supply of firm 4 is 0. When the price for a ball is $50, the supply of firm 1 is 7, the supply of firm 2 is 5, the supply of firm 3 is 5, and the supply of firm 4 is 3. When the price for a ball is $75, the supply of firm 1 is 9, the supply of firm 2 is 8, the supply of firm 3 is 7, and the supply of firm 4 is 6. When the price for a ball is $100, the supply of firm 1 is 11, the supply of firm 2 is 11, the supply of firm 3 is 10, and the supply of firm 4 is 9. When the price is $50, the market supply of soccer balls is: a. 20 b. 10 c. 30 d. 41
What is total surplus? How is it illustrated on a demand and supply diagram?
In the market for hand sanitizers the demand function is given by: q = 80 - p, where q is the quantity of hand sanitizers (in thousands) and p is the price of hand sanitizers in dollars. Suppose the current market price for hand sanitizers is $4. 1. What is the inverse demand function equal to? Draw it in a diagram. 2. At a price of $4, what is the level of consumer surplus? 3. Due to the unprecedented COVID-19 pandemic, people's preferences for sanitizing their hands change in favor of hand sanitizers. In fact, for any given price of hand sanitizers, people now want to purchase 20 units (in thousands) more hand sanitizers. o What is the new demand curve? o What is the new inverse demand curve? o Draw the new inverse demand curve in your diagram. 4. Suppose that after the increase in demand, the new price becomes $8. What is consumer surplus equal to at this new price (and with the new inverse demand curve)? 5. [Challenge Question] What would the consumer surplus be if the government…
Which of the following would lead to the creation of some consumer surplus? Sam refuses to pay $10 for a haircut because it is only worth $8 to him. Fred buys a car for $4000, the maximum amount that he is willing to pay. Danette pays $30 a month for phone service, but it is worth $70 a month to her. When Florence purchases a candy bar for 50 cents, she uses a $20 bill to pay for it.
In a given town, demand for fish and supply of fish is given by P = 3,955 - 6 * Q and P = 1,012 + 24 * Q respectively. Here P and Q denote are fish price and fish quantity (in tons). What percentage of the total surplus goes to producers if the fish market is competitive?
Suppose Rajiv is the only seller in the market for bottled water and Kevin is the only buyer. The following lists show the value Kevin places on a bottle of water and the cost Rajiv incurs to produce each bottle of water: Kevin's Value Value of first bottle: $10 Value of second bottle: $7 Value of third bottle: $3 Value of fourth bottle: $1 The following table shows their respective supply and demand schedules: Price $1 or less $1 to $3 $3 to $7 $7 to $10 More than $10 Quantity Demanded Quantity Supplied 4 3 2 1 0 0 1 2 3 Cost of first bottle: $1 Cost of second bottle: $3 Cost of third bottle: $7 Cost of fourth bottle: $10 4 Rajiv's Costs Use Rajiv's supply schedule and Kevin's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $6, and $9. Enter these values in the following table.
Consumer surplus is a measure of the difference between: a) The price which a consumer has to pay and the cost of producing the good (in a diagram, the area between the market price, and the supply curve). b) The consumer’s willingness to pay, and the cost of production (the area between the demand curve and the supply curve). c) The value which a consumer places on a unit of the good, and the market price (the area between the demand curve and the market price line). d) The marginal revenue from sales and the marginal cost of sales (the area between the marginal revenue and the marginal cost curves).
if the price fall from p0 to p1, the change in consumer surplus is equal to what area?
Each rectangle on the graph corresponds to a particular seller in this market: blue (circe symbols) for Andrew, green (triangle symbols) for Beth, purple (diamond symbols) for Darnell, tan (dash symbols) for Eleanor, and orange (square symbols) for Jacques. (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) 160 140 120 100 180 60 40 20 0 0 Andrew 2 K Bet Darnell Jacques Eleanor 5 3 QUANTITY (Motor scooters) Market Price 6 7 8 ITI Andrew Beth Damell Eleanor 8 8 Jacques