7. Consumer surplus for an individual and a market The following graph shows Shen's weekly demand for apple pie, represented by the blue line. Point A represents a point along his weekly demand. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line. PRICE (Dollars per slice) 7.50 6.75 6.00 5.25 Demand 4.50 3.75 3.00 2.25 1.50 0.75 0 Price 2 Shen's Weekly Demand 4 8 8 10 12 QUANTITY (Slices of apple pie) 18 20 From the previous graph, you can tell that Shen is willing to pay 5 per slice, the consumer surplus he gains from the 8th slice of apple pie is 5 ? for his 8th slice of apple pie each week. Since he has to pay only $3.00 Suppose the price of apple pie were to fall to $2.25 per slice. At this lower price, Shen would receive a consumer surplus of $ slice of apple pie he buys. The following graph shows the weekly market demand for apple pie in a small economy. from the 8th Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of apple ple is $3.00 per slice. Then, use

7. Consumer surplus for an individual and a market The following graph shows Shen's weekly demand for apple pie, represented by the blue line. Point A represents a point along his weekly demand. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line. PRICE (Dollars per slice) 7.50 6.75 6.00 5.25 Demand 4.50 3.75 3.00 2.25 1.50 0.75 0 Price 2 Shen's Weekly Demand 4 8 8 10 12 QUANTITY (Slices of apple pie) 18 20 From the previous graph, you can tell that Shen is willing to pay 5 per slice, the consumer surplus he gains from the 8th slice of apple pie is 5 ? for his 8th slice of apple pie each week. Since he has to pay only $3.00 Suppose the price of apple pie were to fall to $2.25 per slice. At this lower price, Shen would receive a consumer surplus of $ slice of apple pie he buys. The following graph shows the weekly market demand for apple pie in a small economy. from the 8th Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of apple ple is $3.00 per slice. Then, use

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In the preceding diagram what areas represent consumers surplus at the equilibrium price of PE? At PC?
Figure: Leonard's Demand for Pecan Pie) Look at Leonard's weekly demand curve for slices of pie. How many slices of pie is Leonard willing to buy at $3 per slice
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Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market demand and the individual demands of Tex, Dex, and Rex are shown in the following table. a. Fill in the missing values (gray-shaded cells) in the table. Price per Candy $ 8 7 6 5 4 Individual Quantities Demanded Tex 2 4 8 10 Dex 3 4 5 Rex 2 10 14 18 Total Quantity Demanded 14 21 28
Give correct typing answer with explanation
Consider two markets: the market for waffles and the market for pancakes. The initial equilibrium for both markets is the same, the equilibrium price is $6.50, and the equilibrium quantity is 35.0. When the price is $9.75, the quantity supplied of waffles is 57.0 and the quantity supplied of pancakes is 101.0. For simplicity of analysis, the demand for both goods is the same. Using the midpoint formula, calculate the elasticity of supply for pancakes. Please round to two decimal places. Supply in the market for waffles is
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2. Individual and market demand Suppose that Sean and Yvette are the only consumers of shoes in a particular market. The following table shows their annual demand schedules: Price (Dollars per pair) 10 20 30 40 50 PRICE (Dollars per pair) On the following graph, plot Sean's demand for shoes using the green points (triangle symbol). Next, plot Yvette's demand for shoes using the purple points (diamond symbol). Finally, plot the market demand for shoes using the blue points (circle symbol). (?) 60 50 30 20 10 0 0 16 Sean's Quantity Demanded Yvette's Quantity Demanded (Pairs) (Pairs) 32 64 20 48 12 32 4 24 0 16 32 48 64 QUANTITY (Pairs) 80 96 Sean's Demand Yvette's Demand O Market Demand Now, suppose that Yvette's twin brother, who likes shoes just as much a Yvette, moves to the area, adding another consumer in the market. As a result, there will be a ▼ the market demand curve because there will be a change in quantity demanded
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3. Consumer surplus for a group of consumers The following graph plots the demand curve (blue line) for several consumers in the market for motor scooters in Meade, a small town located in Kansas. The Meade market price of a motor scooter is given by the horizontal black line at $80. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Dmitri, green (triangle symbols) for Frances, purple (diamond symbols) for Jake, tan (dash symbols) for Latasha, and blue (circle symbols) for Nick. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a motor scooter at a market price of $80. (Note: If a person will not purchase a motor scooter at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) PRICE (Dollars per motor scooter) 160 140 120 Dmitri Frances Jake 100 80 60 40 20 Dmitri Frances Market Price…