Refer to the figure. Price (dollars) 10 9 7 6 3 2 1 0 Market for Artichokes 50 100 D 150 200 Quantity (pounds of artichokes) 250 Tools CS The graph represents the market for artichokes (in pounds per week) at a Midwest farmers' market. Suppose the equilibrium price of artichokes is $3 per pound and the equilibrium quantity is 100 pounds of artichokes per week. Using the graph, show the area representing consumer surplus in this market, and then determine how much consumer surplus will be generated by the market each week. Instructions: Use the tool provided "CS" to illustrate this area on the graph. Consumer surplus: $

Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
Problem 8PA
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### Market for Artichokes

#### Graph Explanation:
The graph demonstrates the market for artichokes, displaying the relationship between price (in dollars) and quantity (in pounds of artichokes). The graph includes:

- **Supply Curve (S):** An upward-sloping red line indicating that as the price increases, the quantity supplied also increases.
- **Demand Curve (D):** A downward-sloping blue line showing that as the price decreases, the quantity demanded increases.
- **Equilibrium Point:** The intersection of the supply and demand curves, indicating an equilibrium price of $3 per pound and an equilibrium quantity of 100 pounds of artichokes per week.

#### Instructions:
Using the graph, identify and calculate the area representing consumer surplus, which is the gap between what consumers are willing to pay and the market price they actually pay.

- **Consumer Surplus Area:** The area above the equilibrium price line ($3) and below the demand curve (D) up to the equilibrium quantity (100 pounds).

You can employ the provided tool **CS** to visualize this area on the graph.

#### Task:
Determine the consumer surplus generated by the market each week.

**Consumer Surplus Calculation:**

- Mark the consumer surplus using the tool: \( \text{CS} \)
- Enter the calculated amount for consumer surplus: $ _______
Transcribed Image Text:### Market for Artichokes #### Graph Explanation: The graph demonstrates the market for artichokes, displaying the relationship between price (in dollars) and quantity (in pounds of artichokes). The graph includes: - **Supply Curve (S):** An upward-sloping red line indicating that as the price increases, the quantity supplied also increases. - **Demand Curve (D):** A downward-sloping blue line showing that as the price decreases, the quantity demanded increases. - **Equilibrium Point:** The intersection of the supply and demand curves, indicating an equilibrium price of $3 per pound and an equilibrium quantity of 100 pounds of artichokes per week. #### Instructions: Using the graph, identify and calculate the area representing consumer surplus, which is the gap between what consumers are willing to pay and the market price they actually pay. - **Consumer Surplus Area:** The area above the equilibrium price line ($3) and below the demand curve (D) up to the equilibrium quantity (100 pounds). You can employ the provided tool **CS** to visualize this area on the graph. #### Task: Determine the consumer surplus generated by the market each week. **Consumer Surplus Calculation:** - Mark the consumer surplus using the tool: \( \text{CS} \) - Enter the calculated amount for consumer surplus: $ _______
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Assume that the graphs show a competitive market for the product stated in the question.
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Graph (4)
Select the graph above that best shows the change in the digital camera market when the productivity of workers who produce cameras increases.
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Transcribed Image Text:Assume that the graphs show a competitive market for the product stated in the question. Price P₂ t P₁ O Price P₁ 1 P₂ E₁ 0 E2 Q₁ Q₂ Quantity Graph (1) E₁ E₂ D₁ S D D2 S1 Price P₁ Į P₂ 52 O Price P₂ f P₁ 0 F E₂ 0O 0 Q₂ Q₁ Quantity Graph (2) E₁ E2 E₁ D₂ S D₁ 52 Q₁ Q₂ Q₂ Q₁ Quantity Quantity Graph (3) Graph (4) Select the graph above that best shows the change in the digital camera market when the productivity of workers who produce cameras increases. 51
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