Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A A Aa AE
EE AL T
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A、A、 三川m. 、田。
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b. Calculate the consumer surplus for toasters.
8. Explain the concept of producer surplus and total surplus.
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Transcribed Image Text:Homework 4- Compatibility Mode - Saved to this PC
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Rom-12 - A A Aa A
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AaBbCcl AaBbCel AaBbC AaB AaBbCcc
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Chapters 7: Welfare: Consumer and Producer Surplus
5. Explain the concept of consumer surplus.
6. Melinda buys an iPhone for $700 and gets a consumer surplus of $160.
a. What is her willingness to pay?
b. If she had bought the iPhone on sale for $500, what would her
consumer surplus have been.
c. If the price of an iPhone wvere $900, what would her consumer
surplus have been?
7. The demand schedule for toasters, is given below. The price of toasters is $20.
a Graph the demand curve to scale and identify the area that represents the
consumer surplus
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(millions)
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