2. Determine the amount of producer surplus generated in each of the following situations.David lists his talking Vin Scully Bobblehead on eBay. He sets a minimum acceptableprice, known as his reserve price, of $75. After five days of bidding, the final high bidis exactly $75.b. Jade advertises her car for sale in the used-car section of the student newspaper for$2,000, but she is willing to sell the car for any price higher than $1,500. The best offershe gets is $1,200.c. Ryan likes his job so much as a Chief of Staff for Andrew Yang's Campaign that hewould be willing to do it for free. However, his annual salary is $80,000.a.

Producer surplus is characterized as the distinction between how much a specific individual will…

Answered: Determine the amount of producer…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the supply curve is q = 3 + 1.5p, what is the producer surplus if the price is 12?
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The many identical residents of Whoville love drinking Zlurp. Each resident has the following willingness to pay for the tasty refreshment: Quantity First bottle Second bottle Third bottle Fourth bottle Fifth bottle Further bottles Willingness to Pay (Dollars) 10 8 6 4 2 0 The cost of producing a bottle of Zlurp is $3.50, and the competitive suppliers sell it at this price. (The supply curve is horizontal.) Each Whovillian will consume O bottles and receive a consumer surplus of $ Producing Zlurp creates pollution. Each bottle has an external cost of $1. Taking this additional cost into account, total surplus per person in the allocation you previously determined decreases to $ Cindy Lou Who, one of the residents of Whoville, decides on her own to reduce her consumption of Zlurp by 1 bottle. Cindy's consumer surplus (ignoring the cost of pollution she experiences) is now $ by $ Consumption per person is now person external cost of $ Mayor Grinch imposes a $1 tax on each bottle of…
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 to
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Part 1 = Justin's inverse demand for a good is given by p is his gross consumer surplus if the per-unit price is p = 2.00? Part 2 What is Justin's consumer's surplus? 47.00-2.00q. Assuming that there are enough suppliers to meet his demand, what (Round to the nearest two decimals if necessary.) (Round to the nearest two decimals if necessary.)
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