6. Producer surplus and price changesThe following graph plots a supply curve (orange line) for a group of recent graduates looking to sell used smart devices. Each seller has only a singleused smart device available for sale. Think of each rectangular area beneath the supply curve as the "cost," or minimum price that each seller iswilling to accept. Assume that anyone who has a cost that equals the market price is willing to sell their used smart device.PRICE (Dollars per used smart device)3603002401801206000□0Jacques1XOKyoko49Musashi☐RinaUSean234QUANTITY (Used smart devices)D 0☐5YvetteĐ6(?) Region X (the purple shaded area) represents total producer surplus when the market price is equal toarea) representswhen the market price.In the following table, indicate which statements are true or false based on the information provided on the previous graph.Statementwhile Region Y (the grey shadedProducer surplus is larger when the price is $210 than when it is $150.Assuming each seller receives a positive surplus, Musashi will always receive less producer surplus than Rina.True FalseIn order for Yvette to earn a producer surplus of exactly $90 from selling a used smart device, the market price must be $

6. Producer surplus and price changes The following graph plots a supply curve (orange line) for a group of recent graduates looking to sell used smart devices. Each seller has only a single used smart device available for sale. Think of each rectangular area beneath the supply curve as the "cost," or minimum price that each seller is willing to accept. Assume that anyone who has a cost that equals the market price is willing to sell their used smart device. PRICE (Dollars per used smart device) 360 300 240 180 0 ☐ Jacques 1 X 0 Kyoko Musashi 0 Rina Sean 4 QUANTITY (Used smart devices) 5 Yvette 0 Đ 6

6. Producer surplus and price changes The following graph plots a supply curve (orange line) for a group of recent graduates looking to sell used smart devices. Each seller has only a single used smart device available for sale. Think of each rectangular area beneath the supply curve as the "cost," or minimum price that each seller is willing to accept. Assume that anyone who has a cost that equals the market price is willing to sell their used smart device. PRICE (Dollars per used smart device) 360 300 240 180 0 ☐ Jacques 1 X 0 Kyoko Musashi 0 Rina Sean 4 QUANTITY (Used smart devices) 5 Yvette 0 Đ 6

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following graph plots a supply curve (orange line) for a group of recent graduates looking to sell used smart devices. Each seller has only a single used smart device available for sale. Think of each rectangular area beneath the supply curve as the "cost," or minimum price that each seller is willing to accept. Assume that anyone who has a cost that equals the market price is willing to sell their used smart device. 300 250 PRICE (Dollars per used smart device) 20 200 150 180 100 Felix Janet 0 0 1 2 Larry H Megan 3 Raphael 4 QUANTITY (Used smart devices) Susan 5 ? Region X (the purple shaded area) represents total producer surplus when the market price is equal to $ area) represents when the market price while Region Y (the grey shaded In the following table, indicate which statements are true or false based on the information provided on the previous graph. Statement True False Assuming each seller receives a positive surplus, Larry will always receive more producer surplus than…
Question 3 The current price of a good is $25, and 100 units are demanded at that price. The price elasticity of demand for the good is-2. When the price of the good drops by 4 percent to $24, consumer surplus will increase or decrease? By how much?
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Figure 4.5 shows the supply curves of a non-durable good. A shift from the supply curve S to S' could be caused by: Figure 4.5 Price Quantity a. several competing producers going out of business. b. an increase in the current price of the product. c. an expectation of a higher product price in the future among suppliers. d. a patent application that restricts the use of a particular production technology. e. a decrease in consumer income." is
6. Producer surplus and price changes The following graph plots a supply curve (orange line) for a group of recent graduates looking to sell used air fryers. Each seller has only a single used air fryer available for sale. Think of each rectangular area beneath the supply curve as the "cost," or minimum price that each seller is willing to accept. Assume that anyone who has a cost that equals the market price is willing to sell their used air fryer. PRICE (Dollars per used airfryer) 240 200 160 120 80 40 0 U 0 Eric 0 D 1 2,80 Ginny ロロ Kenji Lucia 0+ 0 Paolo 2 3 4 QUANTITY (Used air fryers) DO Sharon O 6 Region X (the purple shaded area) represents total producer surplus when the market price is equal to S area) represents when the market price while Region Y (the grey shaded In the following table, indicate which statements are true or false based on the information provided on the previous graph. Statement Assuming each seller receives a positive surplus, Eric will always receive more…
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.
4. What do you think would be the effect on the equilibrium price and quantity of marijuana as a result of its consumption being legalized? Give reasons for your answer.
. Which statement best explains how a price ceiling affects the market for gasoline? It can cause more gasoline producers to enter the market. It can lead to producers increasing their production costs for gasoline. It can cause shortages in the supply of gasoline. It can lead to a decrease in the demand from consumers for gasoline.
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Producer surplus and price changes The following graph shows the supply curve for a group of students looking to sell used smartphones. Each student has only one used smartphone to sell. Each rectangular segment under the supply curve represents the “cost,” or minimum acceptable price, for one student. Assume that anyone who has a cost just equal to the market price is willing to sell his or her used smartphone.
In a market which demand and supply curves are shown below: Price ($/hour) 36- 32 28- 24 20- 16 12- 8- 4- 0 Demand Supply 1000 2000 3000 4000 5000 6000 7000 Quantity (units/day) a) Calculate the consumer surplus for the market. (If necessary round your answer to the nearest whole number.) Consumer Surplus = $0 b) Calculate the producer surplus for the market. (If necessary round your answer to the nearest whole number.) Producer Surplus = $0