Assume that there are four consumers A, B, C, and D, and the prices that each of them is willing to pay for a glass of lemonade is, respectively, $2.50, $2.25, $2.00, and $175. If the actual price of lemonade is $1.25 peglass, then consumer surplus in this market will beMultiple ChoiceeBook$4.50$3.50$1.00.$3.00.$1.25McGraw< Prev5 of 16Next>P Type here to search958 AM76'F Sunny A O4A de9/23/2021

The surplus is divided into two categories such as consumer surplus as well as producer surplus.…

Answered: Assume that there are four consumers A,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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e 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 AB
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.)
Consider the market for apartments. The market price of each apartment is $300,000, and each buyer demands no more than one apartment. Suppose that Lorenzo is the only consumer in the apartment market. His willingness to pay for an apartment is $480,000. Based on Lorenzo's willingness to pay, the following graph shows his demand curve for apartments. Shade the area representing Lorenzo's consumer surplus using the green rectangle (triangle symbols).
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 Jacques
Please solve the second image. *First image is for information only.
Consider 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…
A consumer is willing to pay $4 for a bag of pretzels, but the price is $1. The consumer surplus in this case is
You’d be willing to pay $200 for a daylong admission ticket to a theme park. The cost of the ticket is $120. Your consumer surplus is:
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.
There are only two people in the market - Amber and Zoe. Amber’s Marginal Willingness to Pay (MWTP) for the Qth bit of the good is given by MWTP=383-2*Q. Zoe’s Marginal Willingness to Pay (MWTP) for the Qth bit of the good is given by MWTP=51-3*Q. Based on this information, what is the market MWTP for the 32th bit of the good? Enter a number only.
Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a smartphone at a market price of $175. (Note: If a person will not sell a smartphone at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) 400 350 Kevin Brian 300 250 Crystal Hilary 200 Market Price Edison 150 Edison 100 Crystal Hilary 50 Brian 1 2 5 6. 7 Kevin QUANTITY (Smartphones) will sell smartphones at the given market price, and total Based on the information on the preceding graph, you can tell that producer surplus in this market will be $ Suppose the market price of a smartphone increases to $275. PRICE (Dollars per smartphone)
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.…

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