(7 Points) Consider the following market for flash drives. Price Quantity supplied Quantity demanded $65 3,000 0 $60 2,750 250 $55 2,500 500 $50 2,250 750 $45 2,000 1,000 $40 1,750 1,250 $35 1,500 1,500 $30 1,250 1,750 $25 1,000 2,000 $20 750 2,250 $15 500 2,500 $10 250 2,750 $5 0 3,000 $0 0 3,250 What is the consumer surplus in the equilibrium? Suppose there is an increase in the cost of producing flash drives such that the quantity supplied decreases by 1,000 units for each price. What is the consumer surplus at the new equilibrium?
- (7 Points)
Consider the following market for flash drives.
Price Quantity supplied Quantity demanded
$65 3,000 0
$60 2,750 250
$55 2,500 500
$50 2,250 750
$45 2,000 1,000
$40 1,750 1,250
$35 1,500 1,500
$30 1,250 1,750
$25 1,000 2,000
$20 750 2,250
$15 500 2,500
$10 250 2,750
$5 0 3,000
$0 0 3,250
- What is the
consumer surplus in the equilibrium? - Suppose there is an increase in the cost of producing flash drives such that the quantity supplied decreases by 1,000 units for each price.
What is the consumer surplus at the new equilibrium?
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