Homework 4 - Compatibility Mode Saved to this PCO SearchJoseph MercadoLayoutReferencesMailingsReviewViewHelpm12 A A Aa A E-EAaBbCcI AaBbCcl AaBbC AaB AabbcccOFindReplaA Selectab x, x A- D A-m。 ,田、1 Normal 1 No Spac. Heading 1TitleSubtitleFontParagraphStylesEditing9. Toasters again! The demand and supply schedule for toasters, is given below.a. Graph the supply and demand curves to scale and identify the areas that representthe consumer surplus and producer surplus($)(millions)(millions)120101001020802030603040405020506060b. What are the equilibrium quantity and price?P. =c. Calculate consumer surplus, producer surplus and total surplus.Foanhpt3fgfo104+#3%24&立 wok 4 Compatibility Mode Saved to this PC9SearchReferencesMailingsReviewViewHelp-A A Aa ApAaBbCel AaBbCcl AaBbC AaB Aabc岛。出。1 Normal 1 No Spac. Heading 1TitleSubtitiantParagraphStyles10. Toasters last time! With the same data as the last problem. What happens ifgovernment imposes a price ceiling of $30.a. How many toasters will be sold?b. What is consumer surplus with price ceiling?c. What is producer surplus with price ceiling?d. What is the total surplus with price ceiling?e. How did the price ceiling change the total surplus compared to free marketequilibrium of #9?Feousbps米fho%23近

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9. Toasters again! The demand and supply schedule for toasters, is given below. a. Graph the supply and demand curves to scale and identify the areas that represent the consumer surplus and producer surplus ($) (millions) (millions) 120 10 100 10 20 80 20 30 60 30 40 40 40 50 20 50 60 60 b. What are the equilibrium quantity and price? Qe P. = %3D c. Calculate consumer surplus, producer surplus and total surplus.

9. Toasters again! The demand and supply schedule for toasters, is given below. a. Graph the supply and demand curves to scale and identify the areas that represent the consumer surplus and producer surplus ($) (millions) (millions) 120 10 100 10 20 80 20 30 60 30 40 40 40 50 20 50 60 60 b. What are the equilibrium quantity and price? Qe P. = %3D c. Calculate consumer surplus, producer surplus and total surplus.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 32 Price 100 75 50 18.5 19.25 20 More ofbarels per day Suppose the graph above accurately depicts the daily US demand curve for oil and that an increase in supply causes the price of oil to fall from $100 to $50 a barrel, what is the change in the daily consumer surplus? a. $925 million b. $37.5 million c. $1.85 billion d. $962.5 million QUESTION 33
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1. Define "consumer surplus" and "producer surplus." Consumer surplus (CS) is the benefit surplus received by a consumer or consumers through market transactions. A CS arises because all consumers pay the equilibrium price even though some consumers would be willing to pay more. CS is measured as the difference between the (maximum. minimum ) price a consumer is (or consumers are) willing to pay (WTP) ( plus, minus , the same as ) the actual price. Consumer surplus is (directly, inversely) related to price. Producer surplus (PS) is the benefit surplus received by a producer or producers through market transactions. A PS arises because some producers are willing to sell a product at a lower price than the equilibrium price. PS is measured as the difference between the actual price the producer receives (or producers receive) and the (maximum, minimum ) price a producer is (or producers are) willing to accept (WTA) as a selling price. Producer surplus is directly, inversely) related to…
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1. Consider the market for cell phones in Celltown. Suppose that the inverse demand curve is P = -2Qd + 300 and that the inverse supply curve is P = 3Qs + 50. a. Sketch the inverse supply and inverse demand curves. b. Calculate the equilibrium price and quantity. c. Compute consumer surplus (CS), producer surplus (PS), and total surplus. d. Suppose the Mayor of Celltown institutes a price floor of P = $250 in order to promote the new technology. It is illegal to sell cell phones at a price below P. What is the quantity transacted in the market with the price floor? e. Compute the change in CS and the change in PS. f. Compute the change in total surplus. If you were an economic advisor to the Mayor whose goal is to maximize the total surplus of the city, would you advise continuing the policy or not? Explain. g. A representative of the Association of Cell Phone Manufacturers arrives at the Mayor's office to lobby against eliminating the price floor. i. Explain why economic theory…