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DRAW THE ECONOMIC SURPLUS CURVE AND EXPLAIN
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- Determine the output level creates a maximum total surplus.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 OMegan buys an iPhone for $240 and gets a consumer surplus of $160. Her willingness to pay for an iPhone is s If she had bought the iPhone on sale for $180, her consumer surplus would have been s If the price of the iPhone had been $500, her consumer surplus would have been s
- Calculate the change in producer surplus when the market price increases from $14 to $16 and the quantity supplied increases from 5,000 units to 6,000 units per month. Assume that the supply curve is linear. Producer surplus will nearest penny.) by $ (Round your answer to theIdentify the Surpluses. The graph to the right shows a supply curve and a demand curve and several areas in between. Identify the areas on the figure that represent the following: a. Consumer surplus in the market equilibrium: b. Producer surplus in the market equilibrium: c. Total surplus in the market equilibrium: d. Consumer surplus when the price is $6: e. Producer surplus when the price is $6: f. Total surplus when the price is $6: g. Consumer surplus when the quantity is 60: h. Producer surplus when the quantity is 60: i. Total surplus when the quantity is 60: Consumer and producer surplus 30- 28- 26- 24- 22- 20- 18 A 18- 16- 14- 12- B 10- D 6 Price 4- EL F - CE Supply Demand 0 20 40 60 80 100 120 140 160 180 QuantityWhat is the producer surplus in the market equilibrium? Again, the equations are: Q = 3P-90 Qd = 400 - 5P
- 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 = $________millionquestion 7Suppose that the smart-phone market has the demand equation of P = 1,200 - 3.5Q and the supply equation of P = 450 + 2.5Q°. a. Find the equilibrium-price and equilibrium-quantity for this market?b.Draw a graph to show this market and compute for consumer surplus, producer surplus and market surplus
- 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.What is the difference between social and industrial regulations? Give examples of each.The graph shows the market for ice cream cones. On the graph, draw a shape that shows the producer surplus at market equilibrium. Producer surplus equals $ Enter your answer in dollars and cents (i.e. round at the second decimal place). 6.00- 5.50- 5.00 4.50- 4.00- 3.50- 3.00 2.50- 2.00 1.50- 1.00- 0.50 0.00 0 Price (dollars per ice cream cone) 5 10 15 20 30 25 Quantity (ice cream cones per day) S D 35 2
