Consider the data in the table below when you answer this question. (As the table suggests, the demand curve for this continuous goodis a straight line and so is the supply curve. Use that information and the geometric method for calculating surplus.)P$1212$10410$888$6126$4164$2202Suppose the price is $8 but that only 4 pizzas are bought and sold due to regulations imposed by the government. The most socialsurplus that can be generated is

To begin, examine the demand and supply curves to determine the consumer surplus.

Answered: Consider the data in the table below…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Consumer Producer Surplus Surplus Neither Statement Even though I was willing to pay up to $120 for a used laptop, I bought a used laptop for only $115. I sold a watch for $61, even though I was willing to go as low as $55 in order to sell it. Even though I was willing to pay up to $67 for a used textbook and even though the seller was willing to go as low as $63 in order to sell it, we couldn't reach a deal because the government imposed a price floor of $76 on the sale of textbooks. O O
8. U.S. government price supports for milk led to an unceasing surplus of milk. In an effort to reduce the surplus about a decade ago, Congress offered to pay dairy farmers to slaughter cows. Use two graphs, one for the milk market and one for the meat market, to illustrate how this policy should have affected the price of meat. (Assume that meat is sold in an unregulated market.) Be sure to draw the inverse demand and supply curves and label your axes. Explain clearly.
Please solve the second image. *First image is for information only.
Suppose the daily demand curve for gasoline is as provided in the accompanying graph. a. Calculate the consumer surplus in the market for gasoline if the market price is $3.50. Consumer surplus = $ ___________ million Now suppose the price decreases to $2.50 per gallon. Move the price line on the graph to reflect this change, then calculate the new consumer surplus. New consumer surplus = $________million
Suppose Rajiv is the only seller in the market for bottled water and Kevin is the only buyer. The following lists show the value Kevin places on a bottle of water and the cost Rajiv incurs to produce each bottle of water: Kevin's Value Value of first bottle: $10 Value of second bottle: $7 Value of third bottle: $3 Value of fourth bottle: $1 Price $1 or less $1 to $3 $3 to $7 $7 to $10 More than $10 The following table shows their respective supply and demand schedules: Quantity Demanded Quantity Supplied 4 3 2 1 0 0 1 2 3 Cost of first bottle: Cost of second bottle: $3 Cost of third bottle: $7 Cost of fourth bottle: $10 4 Rajiv's Costs $1 Use Rajiv's supply schedule and Kevin's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $6, and $9. Enter these values in the following table.
Use the following graph to answer the following question: Price ($) 40 25 15 8. 5n Quantity 15 25 50 75 100 200 Refer to the graph above. Suppose that the government imposes a price floor at $15. As a result, the market will experience OAsurplus of 50 units OA surplus of 25 units O No surplus or shortage O A shortage of 50 units
Question 3 According to the following Figure, please answer a-f 12 D According to this graph, how much is the consumer surplus when price is set at equilibrium (P = $8)? (use the area of triangle: Base x Height x ½) According to this graph, how much is the producer surplus when price is equal to its equilibrium level (P=$8)? (use the area of triangle: Base x Height x ½) In the graph, how much is deadweight loss at a price of P =$8 (equilibrium)? Now, according to this graph, how much is the consumer surplus when price is set below the equilibrium level at P=$5? (Use the area of a triangle and the area of a rectangle, length x length) According to this graph, how much is the producer surplus when price is equal at P= $5? (use the area of triangle: Base x Height x ½) In the graph, how much is deadweight loss at a price of $5? (use the area of a triangle) In all cases please show your calculations so I know how to arrive at those numbers! hp
Chris is buying apples. Suppose the price of apples is $1. Chris is willing to pay $5 for the first apple, and $2 for the second apple, and $0.5 for the third apple. What is Chris' consumer surplus? Your Answer: 5 Your Answer
Price ($) 42 29 20 11 A B G 6 C H N DIE I 11 I K 16 S D If price is set at $11 in the market shown in the graph, consumer surplus will consist of areas: O Quantity
Time left 0:36:13 The table below shows the willingness to pay for a good for four consumers in a market Consumer Willingness to Pay $80 of $65 C $45 D. $30 If the price of the good is $50, what is the total consumer surplus? Select one: a. $25 b. $45 C. $20 d. $65 Next page vious page OCT tv 田 1,532 23
3. Consumer surplus for a group of consumers The following graph plots the demand curve (blue line) for several consumers in the market for motor scooters in Meade, a small town located in Kansas. The Meade market price of a motor scooter is given by the horizontal black line at $80. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Dmitri, green (triangle symbols) for Frances, purple (diamond symbols) for Jake, tan (dash symbols) for Latasha, and blue (circle symbols) for Nick. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a motor scooter at a market price of $80. (Note: If a person will not purchase a motor scooter at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) PRICE (Dollars per motor scooter) 160 140 120 Dmitri Frances Jake 100 80 60 40 20 Dmitri Frances Market Price…
48

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