69°FSunnyPRICE (Dollars per smartphone)24021018015012060300RinaKyokoMarket PriceJacques012345678QUANTITY (Smartphones)Based on the information on the preceding graph, you can tell thatproducer surplus in this market will be $Suppose the market price of a smartphone increases to $165.SeanMusashiJacquesKyokoMusashiRinaSeanwill sell smartphones at the given market price, and total Homework (Ch 07)Suppose the market price of a smartphone increases to $165.On the following graph, use the rectangles once again to shade the areas representing producer surplus for each person who is willing to sell asmartphone at the new market price: blue (circle symbols) for Jacques, green (triangle symbols) for Kyoko, purple (diamond symbols) for Musashi,tan (dash symbols) for Rina, and orange (square symbols) for Sean. (Note: If a person will not sell a smartphone at the new market price, indicatethis by leaving his or her rectangle in its original position on the palette.)240210SeanJacques180150Kyoko120Musashi90RinaO69°FSunnyPRICE (Dollars per smartphone)60300KyokoJacquesRinaMusashiMarket Price

The surplus that depicts the difference between the amount at which the producer is willing to…

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 $165. 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 $165. will sell smartphones at the given market price, and total

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Market Surplus and Shortage Analysis

In everyday language, a “surplus” indicates that there is an excess of something, while a “shortage” means that there is a scarcity of it. In economics, “market surplus” refers to the condition where the quantity of a certain good more available than what is required or “demanded” by the market. In the same way, a “market shortage” refers to the condition where the quantity of a certain good is less available than what is “demanded” by the market. If quantity in demand is written as Qd and quantity that is supplied is written as Qs, then, the condition Qs > Qd indicates market surplus and condition Qd > Qs indicates market shortage.

Question

69°F
Sunny
PRICE (Dollars per smartphone)
240
210
180
150
120
60
30
0
Rina
Kyoko
Market Price
Jacques
0
1
2
3
4
5
6
7
8
QUANTITY (Smartphones)
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 $165.
Sean
Musashi
Jacques
Kyoko
Musashi
Rina
Sean
will sell smartphones at the given market price, and total

Homework (Ch 07)
Suppose the market price of a smartphone increases to $165.
On the following graph, use the rectangles once again to shade the areas representing producer surplus for each person who is willing to sell a
smartphone at the new market price: blue (circle symbols) for Jacques, green (triangle symbols) for Kyoko, purple (diamond symbols) for Musashi,
tan (dash symbols) for Rina, and orange (square symbols) for Sean. (Note: If a person will not sell a smartphone at the new market price, indicate
this by leaving his or her rectangle in its original position on the palette.)
240
210
Sean
Jacques
180
150
Kyoko
120
Musashi
90
Rina
O
69°F
Sunny
PRICE (Dollars per smartphone)
60
30
0
Kyoko
Jacques
Rina
Musashi
Market Price

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