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A: here we calculate the resulting surplus.
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Q: turns out to be below the equilibrium price, then there will be a shortage of the product surplus…
A: Equilibrium is achieved at the output level where quantity supplied equals quantity demanded.
Q: If you sold 500 pounds of beef for $5 per pound when you usually sell it for $2 per pound. What is…
A: you sold 500 pounds of beef for $5 per pound when you usually sell it for $2 per pound. What is your…
Q: uppose the market supply curve is p = 6Q. What is the producer surplus at a price of 15?
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Q: The table shows the demand and supply schedules for on-campus housing. If the college puts a rent…
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Q: What areas of the diagram above represent the surplus transferred from consumers to producers with a…
A: BCFHere's why:The price floor (P1) is a horizontal line that acts as a minimum price at which goods…
Q: A surplus in a competitive market occurs when the: O quantity demanded exceeds the quantity supplied…
A: The issue introduced is to recognize under what conditions a surplus happens in a competitive…
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- If producers are willing to sell 20 cans of soda at a total price of 10 and a local restaurant offers to pay 16, then producer surplus is equal toThe local weather treatment facility, a price taker, is able to supply the first gallon of water for $0.01. The second for $0.02. The third for $0.03 and so on. The current price of water is $0.06 per gallon. - choose each of the following that are correct a. Producer surplus will rise if the market price increases to $0.07 per gallon b. This water treatment facility will choose to produce seven gallons of water c. The firm will enjoy higher producer surplus if it unilaterally raises prices d. This water treatment facility will earn $0.15 in producer surplusThe table shows the demand and supply schedules for on-campus housing. If the college puts a rent ceiling on rooms of $350 a month, rent is $7 and the number of rooms rented is 4. The on-campus housing market is inefficient Rent (dollars per month) 250 275 300 325 350 375 Quantity demanded 2,500 2,250 2,000 1,750 1,500 1,250 (rooms) Quantity supplied 2,000 2,000 2,000 2,000 2,000 2,000 Next
- Qd=120-3P Qs =30 At the equilibrium price and quantity, what is producer surplus?At 10 million hours, what areas make up the total economic surplus in this market?The following diagram represents the market for paperback books. Which area represents producer surplus? Price per book 30 (dollars) с B O A A X 15 15 None of the above. 30 Thousands of books per week
- The table shows the demand and supply schedules for on-campus housing. If the college puts a rent ceiling on rooms of $650 a month, rent is $ number of rooms rented is. The on-campus housing market is V efficient inefficient and the $ Rent (dollars per month) 500 550 600 650 700 750 Quantity demanded 2,500 2,250 2,000 1,750 1,500 1,250 (rooms) Quantity supplied 2,250 2,250 2,250 2,250 2,250 2,250 NextUse the graph below to answer the following questions: a) what is the level of producer surplus if the market clearing price is $6? b) calculate the change in producer surplus if price increases from $6 to $8. c) what is the elasticity of supply in the $6-$8 price range?What did Lewis mean when he wrote that there was a surplus of labor in agriculture? How does one measure that surplus? To what standard is labor in surplus, that is, in surplus relative to what?
- Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up to $20 each for 10 scarves. When he arrives at Macy's at 5:00 A.M. on Black Friday, he discovers that scarves are on sale for $12 each. Hugo buys 10 scarves and uses the remaining $80 to buy himself some clothes. How much consumer surplus did Hugo receive from the tenth scarf he purchased? a. Consumer surplus from the tenth scarf: $ b. Assuming Hugo follows the Rational Rule for Buyers, why did Hugo only purchase 10 scarves when they were on sale? Shouldn't he have purchased more since they were such a good deal compared to what he was willing to pay? At a price of $12, Hugo determined that buying an eleventh scarf gave him more than $12 in benefit. buying an eleventh scarf gave him less than $8 in consumer surplus. buying an eleventh scarf gave him less than $12 in benefit. O the price…Suppose there is an inverse supply function PS= 10 + 4.5Q and a market price P* = 44. What is the quantity supplied? What is the producer surplus?Producer surplus is the difference between the price the firm would be willing to sell its food for and the price the firm actually receives. True or false