com indives 2021752 qu2> 4077947/*k*Use the graph below to answer the following questions: (you can identify an areaby using the letters, for instance Area BAK)BPAKPNMRLQSDaa) Which area represents consumer surplus at price P?b) Which area represents producer surplus at price P?c) What is the change in consumer and producer surplus after a price floor is putin place at price A?d) Is the economy better off, worse off, or unaffected after governmentacer

a. CONSUMER SURPLUS AREA:The consumer surplus basically means the difference between what a consumer…

Answered: com indives 2021752 qu2> 4077947/*k*…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 11P

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What is producer surplus? How is it illustrated on a demand and supply diagram?
PRICE [Dolars per laptop) The following diagram shows supply and demand in the market for laptops. 150 Demand 135 120 105 90 75 60 45 30 15 Supply ° 1 0 35 70 105 140 175 210 245 280 QUANTITY (Millions of laptops) 315 350 Fill in the following blanks with integer values: The market price is The market quantity is The consumer surplus is 4200 The producer surplus is 4200 The total surplus is 8400 A price ceiling is imposed at $60. The market price is now There is now a (surplus/shortage/none) Is there deadweight loss (yes/no)? of what amount? How much if any? If a price floor is implemented at $65, would it be binding? (yes/no)
Solve by making graph
Observe the graph given below and answer the following qusestions.1 Producer Burplus at Price 1 Price Supply 15 10 Quantity Copyrigheso ?a. When the price is 10, What is the area of initial producer surplus ?b. When the price is 15, What is the area of additional producer surplus to the initial producer ?c. When the price is 15, What is the area of producer surplus to the new producer d. When the price increases from 10 to 15, What happens to the producer surplus? Increase or ?decrease e. When the price increases from 10 to 15, What happens to the quantity supplied in the ?market
Suppose the market price of sunflower changed to 5 (P = 5) from the market equilibrium (Question 10). 12. Use the percentage change in quantity and price to calculate the price elasticity of demand from this change 13. What is new consumer surplus and producer surplus? Who gets benefit from this price change? Briefly explain.
Use the following graph to answer the question: how much is producer surplus? What is the total value to consumers of consuming the first ten units of this good?
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The graph represents the weekly demand and supply for the game console market. Instructions: Enter your answers as a whole number. a. What is the equilibrium price and quantity? Price: $ Quantity: game consoles b. Show the area of consumer surplus on the graph, and then determine how much consumer surplus is generated in the market each week. Instructions: Use the tool provided “CS” to illustrate this area on the graph. Consumer surplus: $ Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
K Suppose the supply and demand schedules for cell phones are as follows: Supply 1234567890 54321 11 Price Demand $2 11 $3 10 $4 9 $5 8 $6 $7 $8 $9 $10 $11 $12 2 The initial equilibrium price is $7 and the initial equilibrium quantity is 6 units. (Enter your responses as integers.) Find consumer surplus, producer surplus, and total surplus in the cell phone market. Consumer surplus is $15, producer surplus is $15, and total surplus is $ 30. (Enter your responses as integers.) Suppose the government sets a maximum price (that is, a price ceiling) of $4. With the price ceiling, the new market price is $ 4 and the new quantity traded is 3 units. (Enter your responses as integers.) Find consumer surplus, producer surplus, and total surplus now that there is a price ceiling of $4. Consumer surplus is $☐ producer surplus is $☐, and total surplus is $ (Enter your responses as integers.)
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Macmillan Learning Suppose the graph depicts a hypothetical market for concert tickets at a local college venue. Because students are paying such high prices, a price ceiling of $40 per concert is being considered. Move the price ceiling line to correctly depict the price ceiling of $40. By how much does consumer surplus (CS) increase if the price ceiling is imposed? $ 250 Price (S) 100 90 80 70 60 50 40 30 20 10 0 0 Market for Concert Tickets Price ceiling 10 20 30 D Quantity (tickets) S 40 50 60 70 80 90 100
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