Consider the market for theater movies. The price-intercept for the supply curve is $5. The price-intercept for the demand curve is $30. At equilibrium, this market sells 6,000 tickets at $15 per prune. My suggestion is to draw this on your own paper, so you can see the illustration of the market dynamics and use it to answer these questions: 4. 4а. Calculate the consumer surplus for theater movies. 4b. Calculate the producer surplus for theater movies. 4с. Calculate the total surplus for theater movies.
Consider the market for theater movies. The price-intercept for the supply curve is $5. The price-intercept for the demand curve is $30. At equilibrium, this market sells 6,000 tickets at $15 per prune. My suggestion is to draw this on your own paper, so you can see the illustration of the market dynamics and use it to answer these questions: 4. 4а. Calculate the consumer surplus for theater movies. 4b. Calculate the producer surplus for theater movies. 4с. Calculate the total surplus for theater movies.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Refer to Question 4b. The producer surplus for theater movies is $_____. Do not forget to round to two decimal places, input the decimal point and two places to the right of the decimal point, and place a comma, if needed.
Transcribed Image Text:Use this image to answer the following (independent) questions:
90
75
50
25
10
D
200
500
800
1.
In the space below, calculate CS, PS, and TS, assuming this market is efficient. (Use your Economics Rubric)
Using the above image, assume the price of the product climbs to $75.
If the price of $75 on the image above is, instead, a price
If the price of $75 on the image above is a price
Using the above image, assume the price of the product drops to $25.
If the price of $25 on the image above is a price floor, then it would be
2.
2a.
then it would be nonbinding within the market.
2b.
, then it would be binding within the market.
3.
За.
within the market.
Consider the market for theater movies. The price-intercept for the supply curve is $5. The price-intercept for the demand
curve is $30. At equilibrium, this market sells 6,000 tickets at $15 per prune. My suggestion is to draw this on your own
paper, so you can see the illustration of the market dynamics and use it to answer these questions:
4.
4a.
Calculate the consumer surplus for theater movies.
onsum
4b.
Calculate the producer surplus for theater movies.
4c.
Calculate the total surplus for theater movies.
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