Anderson is willing to pay $12. Kendrick can provide the item for $10, but producing the item imposes a cost of $8 on Talib. If Anderson purchases the item from Kendrick for $11, what is the total surplus from the transaction? (Remember, do not enter the $, and enter the - if TS is negative.)
Q: of each download is $0.50. How much should the provider charge for an annual membership in order to…
A: A consumer surplus happens when the cost consumers pay for an item or administration is not exactly…
Q: D(x) is the price, in dollars per unit, that consumers are willing to pay for x units of an item,…
A: In equilibrium, D(x) = S(x) Consumer surplus (CS) = area between demand curve and price Producer…
Q: West Central State College is making holiday wreaths to raise money for a homeless shelter. From…
A: Given,
Q: The price-demand equation for a particular flashlight is given by p= 1180.002x, where x is the…
A: The demand curve represents the quantity demanded by consumers at different price levels. The supply…
Q: Consider the market for socks. The current price of a pair of plain white socks is $5.00. Two…
A: Willingness to pay (WTP) is the maximum price that the consumers are willing to pay for the good.…
Q: For the pizza seller whose marginal, average variable, and average total cost curves are shown in…
A: 1.) When the price is $1.50 per slice, the profit-maximizing level of output is 450 slices per…
Q: Suppose there are three types of consumers who attend concerts at your university's performing arts…
A: Price discrimination is a pricing strategy where a seller charges different prices to different…
Q: Amir tutors in his spare time for extra income. Students are willing to pay $54 per hour for as many…
A: The objective of the question is to calculate the producer surplus for Amir. Producer surplus is a…
Q: The following graph plots a supply curve (orange line) for a group of recent graduates looking to…
A: Producer surplus is the area below price and above supply curve. The higher the price , higher will…
Q: If a boxing fight is shown on pay-per-view television every Saturday at 4 p.m., the demand curve for…
A: This problem focuses on determining the outcome of having a pay-per-view charge for watching the…
Q: You own a company that produces coasters. You set the price at $10 for a set of six coasters. Then…
A: A company generally works towards maximizing its profit and a company maximizes its profit by…
Q: D(x)= -4/15 x + 21 and S(x)= 1/3x + 3. D(x) is price in dollars per unit that consumers are willing…
A: Producer surplus refer to the difference between the minimum acceptance price of the producer and…
Q: John purchases a 1964 Mustang for $40,000 and gets consumer surplus of $5,000 A) What is his…
A:
Q: In this problem, p is in dollars and x is the number of units. The demand function for a certain…
A: To find the equilibrium point, we need to find the values of x and p where the demand and supply…
Q: Select the example below that corresponds to consumer surplus. The price of gold increases to $300…
A: Consumer surplus is the difference between what consumer is willing to pay and what they actually…
Q: A concert promoter has been selling 280 T-shirts on average at performances for $17 each. They…
A: Demand refers to the quantity of a good or service that consumers are willing and able to purchase…
Q: Sven makes rocking chairs for a cost of $75 each, and he sells the rocking chairs for a market price…
A: The government uses price controls to exert direct influence over market prices. It has an impact on…
Q: - x, for 0sxs5; S(x) = vx+1 %3D the coordinates of the equilibrium point? ordered pair.)
A: At equilibrium were demand = supply
Q: In this problem, p is in dollars and x is the number of units. The demand function for a product is…
A: Demand function: - demand function is a functional relationship between the quantity demanded and…
Q: Andi is willing to buy a shoe X for Rp. 100, Budi is willing to buy a shoe X for Rp. 90, Tono is…
A: Market price =$50
Q: Suppose Bull Gator Ben has paid his $14,300 donation and purchased eight season tickets at $32 per…
A: Total Profit = Total Revenue - Total Cost In case of profit total revenue exceeds total cost and in…
Q: The demand and supply functions for a particular commodity are D(x) = 80e-0.001x and S(x)= 30e0.001r…
A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…
Q: Select the correct one : A “Spider-man” DVD is worth $30 to Marcus. But he buys one on sale for…
A: The value of the DVD which is $30 is the total value placed on the DVD. The actual price would be…
Q: The demand function for a quantity of a certain good is D(g) = √100 - q², and the supply function is…
A: In the market, the point where what the consumer wants to buy and at what price is equal to the…
Q: With its new global mobile phone service, Ultra Mobile offers the following price schedule: Your…
A: Consumer surplus is the difference between the highest price a consumer is willing to pay and the…
Q: Joe mows lawns in his neighborhood for extra money. Suppose the demand for lawn mowing in Joe's…
A:
Q: ter is willing to pay $200 for the latest pair of Air Jordans. If the shoes are selling for $140 per…
A: Answer to the question is as follows :
Q: Fill in the blanks. Price $5 $4 $3 $2 $1 Quantities Demanded by Jill 0 1 2 3 4 Refer to the above…
A: Consumer surplus is the difference between the consumer's maximum willingness to pay and actual pay.…
Q: A "Spider-man" DVD is worth $30 to Marcus. But he buys one on sale for just $15. What is the…
A: The value of the DVD would be the total value of the DVD which would result in the total value…
Q: The demand function for a particular vacation package is p(x) = 4,000 − 43sqrt(x) Find the…
A: Consumer surplus refers to the difference between the maximum price that a consumer is willing to…
Q: The market for soda beverages demand is QD = 90-20P and supply is QS = 30P-10. Price is measured in…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: You normally take the bus to school and it costs you $2 roundtrip. Let's say the bus line was…
A: Willingness to pay refers to the maximum price or lower than that a consumer is ready to buy one…
Q: Find the consumers' surplus and the producers' surplus at the equilibrium price level for the given…
A: The demand equation is given as The supply equation is given as
Q: Amanda buys a ruby for $330 for which she was willing to pay $340. The minimum acceptable price to…
A: Consumer Surplus: The consumer surplus is the net benefit that the consumer receives by purchasing…
Q: A producer is willing to produce 3 units at 3 dollars per unit and another producer is willing to…
A: Producer surplus defines a quantitative measure to estimate the benefit or gain received by a seller…
Q: Assume an equilibrium price of $7 and equilibrium quantity of 8 units at demand D and supply S2 in…
A: The equilibrium price is the only price where the plans of consumers and the plans of producers…
Q: Price of hamburger $5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 S₁ D₁ 100 200 300 400 500…
A: The parameters of both supply and demand affect the connection between consumers and sellers in an…
Q: Suppose the equilibrium price of milk is $3 per gallon but the federal government sets the market…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: Last Saturday, Sammy supplied 100 baskets of strawberries at the farmer’s market when the…
A: Producer surplus at price of 3 $ = ½ * (100-0) * 3 $ = 150 $ Producer surplus at price of 4 $ = ½ *…
Q: D(x) is the price, in dollars per unit, that consumers are willing to pay for x units of an item,…
A: Introduction A solution that does not change with time is an equilibrium point of a dynamical system…
Q: Sven makes rocking chairs for a cost of $75 each, and he sells the rocking chairs for a market price…
A: Here it is given that if there is no government intervention the market price of chair is $130. For…
Q: 5.00 4.50 Demand 4.00 3.50 Triangle 3.00 2.50 2.00 1.50 Price of Minutes
A: In economics, demand is defined as the willingness and ability of customers to consume a particular…
Q: V surplus is the difference between the highest price a consumer is willing to pay and the price the…
A: Consumer surplus is the area above the price line and below the demand curve. It shows the…
Step by step
Solved in 2 steps
- Assume that a price floor of $320 has been implemented and there are no wasteful quality improvements. What are the total gains from trade (total surplus) with a price floor of $320? Hint: enter your answer as a number only with no $ sign Example: if the answer is $10,000, enter 10,000 2,400e E L E 11- esc CENGAGE MINDTAP Chapter 07 Homework Consider the market for electric vehicles. The market price of each electric vehicle is $340,000, and each consumer demands no more than one electric vehicle. Suppose that Antonio is the only consumer in the electric vehicle market. Their willingness to pay for an electric vehicle is $595,000. Based on Antonio's willingness to pay, the following graph shows his demand curve for electric vehicles. PRICE (Thousands of dollars) Shade the area representing Antonio's consumer surplus using the green rectangle (triangle symbols). 680 595 1 ! 510 425 3:0 255 170 85 0 :0² FI Q A N Antonio's Demand Now, suppose another buyer, Caroline, enters the market for electric vehicles, and her willingness to pay is $425,000. @ 2 GO 2 QUANTITY (Electric vehicles) F2 W S 3 #3 80 F3 E Market Price D $ 4 X C 888 F4 R F Antonio's Consumer Surplus % 5 ng.cengage.com FS T V 6 MacBook Air G (?) F6 Y B & 7 H F7 U N * 8 J DII 1 ( 9 M K ) 0 0 F10 L P Q 90 ABBetty is willing to pay up to $150 for a particular pair of boots. She is able to buy the boots for $120. The marginal cost of producing the boots is $60. How large is the total economic surplus associated with her purchase of the boots?
- Corn is a very valuable product for which the U.S. government routinely offers subsidies. With no price support, the equilibrium price for corn is $300 per ton and the equilibrium quantity is 500 million tons per year. Suppose that the government agrees to pay farmers $350 for every ton of corn they produce and can't sell in the market. According to the farmer's market supply curve, 600 million tons per year is supplied at the price of $350 a ton, so production should increase to this amount. However, domestic users of corn cut back their purchases. Only 450 million tons a year is demanded at the price of $350 a ton, and purchases decrease to this amount. Farmers continue to produce 500 million tons of corn per year, so because they produce a greater quantity of corn than domestic buyers are willing to purchase, something must be done with the surplus. To make the price support work, the government decides to buy the surplus. a. In this example, how many million tons does the…Each rectangle on the graph corresponds to a particular seller in this market: blue (circe symbols) for Andrew, green (triangle symbols) for Beth, purple (diamond symbols) for Darnell, tan (dash symbols) for Eleanor, and orange (square symbols) for Jacques. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at a market price of $70. (Note: If a person will not sell a motor scooter at the market price, indicate this by leaving their rectangle in its original position on the palette.) ? PRICE (Dollars per motor scooter) 160 140 120 100 180 60 40 20 0 0 Andrew 2 K Bet Darnell Jacques Eleanor 5 3 QUANTITY (Motor scooters) Market Price 6 7 8 ITI Andrew Beth Damell Eleanor 8 8 JacquesConsider the market for electric vehicles. The market price of each electric vehicle is $200,000, and each consumer demands no more than one electric vehicle. Suppose that Jake is the only consumer in the electric vehicle market. Their willingness to pay for an electric vehicle is $350,000. Based on Jake's willingness to pay, the following graph shows his demand curve for electric vehicles. Shade the area representing Jake's consumer surplus using the green rectangle (triangle symbols). PRICE (Thousands of dollars) 400 Jake's Demand 350 300 250 200 150 100 50 Market Price 0 0 3 4 5 QUANTITY (Electric vehicles) Jake's Consumer Surplus Now, suppose another buyer, Latasha, enters the market for electric vehicles, and her willingness to pay is $250,000. Based on Latasha's and Jake's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Jake's consumer surplus using the green rectangle (triangle symbols), and…
- 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. 180 150 PRICE (Dollars per used air fryer) 60 60 90 90 120 30 0 0 ㅁ Raphael Y X ☐ Susan ☐ Clancy ☐ Becky Alex ㅁㅁ Eileen +> 1 2 3 4 5 6 QUANTITY (Used air fryers) 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, Raphael will always receive less producer surplus…You are a math tutor, and you offer in-home tutoring on weekday afternoons for $20 an hour. On Saturdays, you tutor students hourly for free at the community center. Since you follow the Rational Rule for Consumers, which statement can you conclude is TRUE? Your economic surplus rises or at least remains unchanged when you tutor at the community center. You couldn't gain any economic surplus from tutoring at the community center since you earn $0 per hour. You can't compare the two types of tutoring because you can't quantify how much donating your time means to you. O The time you spend tutoring the students on weekday afternoons lowers your economic surplus.Solve a Consumers' or Producers' Surplus Problem. A sports watch has a price-demand equation given by p= D(z) = 40-2-0174176a dollars, which gives the price per watch when a watches are demanded. The price-supply equation for the watch is given by p= S(x) = 0.6z+4 dollars, which gives the price per watch when z watches are supplied. If the equilibrium quantity is 11, find the consumers' surplus and the producers' surplus. The consumers' surplus is. (Your answer must begin with S.) The producers' surplus is Your answer must begin with $.)
- Refer to Figure 9-2. Without trade, consumer surplus amounts to Group of answer choices $9,720. $19,440. $23,280. $20,280.You are considering buying a monthly metro pass for the subway at $150 or paying $4 per ride. Your monthly demand curve is P = 60 - 2Q where Q is the number of rides per month. Given this information, your consumer surplus will be $750 buying each ride and $900 with the monthly pass. $600 buying each ride and $700 with the monthly pass. $784 buying each ride and $900 with the monthly pass. $784 buying each ride and $750 with the monthly pass.Dean likes to practice guitar in his apartment, working primarily on mastering old Velvet Underground songs. Because he’s sure that developing guitar prowess will lead to riches – or at least critical acclaim in indie circles – he derives $500 in surplus from being able to practice. Dean’s practicing, however, is quite loud and can be heard clearly through paper-thin walls in his hip Brooklyn apartment. Britta lives next door and likes to read, but she is unable to do so when Dean plays guitar. She gets $350 in surplus from the satisfaction of reading. Suppose that when Dean and Britta bargain, they always split any surplus to be divided evenly. Assume that it’s common knowledge that courts always overestimate damages by $200, and transaction costs are $50. Given these assumptions, which of the following legal rules is most efficient: Assuming the same information from Question 28 above, what would be the most efficient tax to levy on Dean’s playing? A. $200 B.…