6. Consumer Surplus Valerie buys an iPhone for $240 and gets a consumer surplus of $160. Her willingness to pay for an iPhone is $ If she had bought the iPhone on sale for $180, her consumer surplus would have been $ If the price of the iPhone had been $450, her consumer surplus would have been $

6. Consumer Surplus Valerie buys an iPhone for $240 and gets a consumer surplus of $160. Her willingness to pay for an iPhone is $ If she had bought the iPhone on sale for $180, her consumer surplus would have been $ If the price of the iPhone had been $450, her consumer surplus would have been $

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Description: 6. Consumer SurplusValerie buys an iPhone for $240 and gets a consumer surplus of $160.Her willingness to pay for an iPhone is $If she had bought the iPhone on sale for $180, her consumer surplus would have been $If the price of the iPhone had been

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Supply and Demand Schedules for A Gallon of Gasoline Price Quantity Supplied Quantity Demanded $4.00 $5.00 $6.00 $7.00 $8.00 6500 7000 7500 8000 8500 8000 7000 6000 5000 4000 Complete parts a, b, and c and either part d OR part e. a. Graph the supply and demand schedules in a supply curve and demand curve, respectively, on one graph. b. What are the equilibrium price and quantity? c. Show on your graph from part a and explain how the sanctions being placed upon Russia as a result of their actions in the Ukraine has affected the world market for the gallons of gasoline. Label what you did as R. d. If the government determined that the price for the gallon of gas in the marketplace should be set at $4.00, would this indicate that they were setting a price ceiling or a price floor? At this price of $4.00, how many gallons of gas will be sold
6. Determinants of demand The following graph input tool shows the demand for sedans in New York City. For simplicity, assume that all sedans are identical and sell for the same price. Initially, the calculator shows market demand under the following circumstances: average household income is $50,000 per year, the price of a gallon of regular unleaded gas is $3 per gallon, and the price of a subway ride is $1.50. Use the graph input tool to help you answer the questions that follow. (Note: You will not be graded on any adjustment made to the graph used in the tool.) PRICE (Thousands of dollars per sedan) Demand 100 200 300 400 500 600 700 800 900 QUANTITY (Sedans per month) Graph Input Tool Price of a sedan (Thousands of dollars) Quantity of sedans (Sedans per month) Average Income (Thousands of dollars) Price of gasoline (Dollars per gallon) Price of a subway ride Suppose that the price of a sedan decreased from $25,000 to $20,000. This would cause a 25 450 50 $3.00 $1.50 Suppose that…
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 (?)
Safari File Edit View History Bookmarks Window Help ] CENGAGE MINDTAP Aplia Homework: Chapter 7 4. Consumer surplus for an individual and a market PRICE (Dollars per slice) 7.50 6.75 6.00 The following graph shows Amy's weekly demand for cheesecake, represented by the blue line. Point A represents a point along her weekly demand curve. The market price of cheesecake is $3.00 per slice, as shown by the horizontal black line. 5.25 4.50 3.75 3.00 2.25 1.50 Cengage Learning Demand Price BO Amy's Weekly Demand 27 A · 280 C NOV 8 Ang.cengage.com O Mind Tap - Cengage Learning ? tv ♫ Ć NA Q Search this course W (1) WhatsApp 00 G Wed Nov 8 4:30 DOCK + Amandeep X !
5. Complete the sentences: A demand curve shows the quantity demanded at each possible holding the other factors that influence purchases. The quantity demanded is the amount of a good that consumers are willing to given price, holding the other factors that influence purchases. Changes in the quantity demanded in response to changes in price are A change in any relevant factor other than the price of the good causes at a
6 . Consumer Surplus Ana buys an iPhone for $150 and gets a consumer surplus of $200. Her willingness to pay for an iPhone is $_________. If she had bought the iPhone on sale for $100, her consumer surplus would have been $_______. If the price of the iPhone had been $370, her consumer surplus would have been $_________.
3. Suppose that you operate a parking lot in downtown Milwaukee. Your cost for allowing another vehicle to park in your lot is virtually zero – therefore, the only thing you care about is getting as much revenue as you possibly can. Price per hour |A $6 B 5. 4 2 1 G 200 300 400 500 600 100 Hours per day a. Suppose that you raise the price of parking from $3 to $4. Draw the price effect and the quantity effect on the graph. b. Calculate the price effect and the quantity effect (note that the sign of each effect is important)! c. Is your demand curve elastic, inelastic, or unit elastic between $3 and $4? Given that you want to raise as much revenue as possible, do you want to raise the price from $3 to $4?
2. The price of “CD” changes from $2 to $1.50. What happens to equilibrium price and quantity of “CD player”? (NOTE: we may call “CD” and “CD player” are complementary goods.)
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)
8. Suppose we want regular cars to be gradually replaced by electric cars. There are several kinds of government interventions that could be used to make this happen, or at least to push the car market to produce and sell more electric cars. Explain how a tax could be used for this purpose, and then explain how a subsidy could be used for this purpose.
6. Consumer Surplus Cho buys an iPhone for $240 and gets a consumer surplus of $160. Her willingness to pay for an iPhone is If she had bought the iPhone on sale for $180, her consumer surplus would have been If the price of the iPhone had been $420, her consumer surplus would have been S
Demand 1. Complete the sentence: (give me two examples) The quantity of a good or service demanded by consumers depends on 2. List five other factors of demand and explain their effects. 3. Give one example of a substitute. 4. Give one example of a complement