(Figure: Determining Surplus 5) According to the graph, consumer surplus isand producer surplus isatequilibrium.60c504030020101020 30405060 708090QuantityO $40; $40O $400; $200O $20; $10O $800; $400Price ($)

Consumer surplus is calculated by analyzing the difference between consumer's willingness to pay and…

(Figure: Determining Surplus 5) According to the graph, consumer surplus is and producer surplus is at equilibrium. 600 50 os A 40 300 20 10- 10 20 30 40 50 60 70 80 90 Quantity $40; $40 $400; $200 $20; $10 $800; $400 Price ($)

(Figure: Determining Surplus 5) According to the graph, consumer surplus is and producer surplus is at equilibrium. 600 50 os A 40 300 20 10- 10 20 30 40 50 60 70 80 90 Quantity $40; $40 $400; $200 $20; $10 $800; $400 Price ($)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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8. Total economic surplus The following diagram shows supply and demand in the market for tablets. Use the black point (plus symbol) to indicate the equilibrium price and quantity of tablets. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus.
11. For a particular product the Demand and Supply functions are D(x) = 20 -0.05x and S(x) = 2 +0.002x² Sketch the graphs and using your calculator determine the equilibrium quantity and price. On the graph shade the consumers' and producers' surplus regions. Find the producers' and consumers' surplus. 26 22 20 18 16+ 14 124 10 8 10 30
9) MARKET EQUILIBRIUM Suppose the demand for a product is given by p = d(q) = -0.4q + 300 and the supply for the same product is given by p = s(q) = 0.2q. For both functions, q is the quantity and p is the price, in dollars. a. Find the equilibrium point. (i.e. the market demand quantity and the market price) b. Find the consumer surplus at the equilibrium price. c. Find the producer surplus at the equilibrium price.
Question 1. Melissa buys an iPhone for $120 and gets consumer surplus of $80. a) What is her willingness to pay? b) If she had bought the iPhone on sale for $90, what would her consumer surplus have been?
Review == 10 Consider the attached supply and demand diagram. At the market equilibrium, what is Consumer Surplus? 9 8 7 6 5 4 3 2 1 SD1 Review 0 Price 1 2 3 4 Type your numeric answer and submit 5 6 7 8 9 D Confusing 10 S Quantity 12 11 Close
7. Producer surplus for an individual and a market Suppose the market for macaroons is perfectly competitive, so sellers take the market price as given. Musashi manages a bakery that offers. macaroons for sale. The following graph plots Musashi's weekly supply curve (orange line). Point A represents a point along his supply curve. The price of macaroons is $2.25 per macaroon, which is given by the black horizontal line. PRICE (Dollars per macaroon) 9.00 8.25 7.50 + 6.75 6.00 + 5.25 4.50 3.75 3.00 - 2.25 1.50 0.75 + 0 0 Price Supply Musashi's Weekly Supply 6, 1.5 * A 2 4 6 10 12 14 16 18 QUANTITY (Macaroons) 8 20 22 24 ? Using the previous graph, you can determine that Musashi is willing to supply his 6th weekly macaroon for $ macaroon, the producer surplus earned from supplying the 6th macaroon is $ Since he receives $2.25 per Suppose the price of macaroons were to rise to $3.00 per macaroon. At this higher price, Musashi would receive a producer surplus of $ from the 6th macaroon he…
(Figure: Consumer Surplus for Mystery Books) In the figure Consumer Surplus for Mystery Books, when the price falls from $30 to $25, consumer surplus for a total consumer surplus of Price of book $59 45 35 30 25 10 Aurora 0 1 increases by $5; $54 decreases by $15; $34 increases by $25; $74 increases by $15; $64 2 Flynn 3 Merida Ariel Naveen D 4 5 Quantity of books
Price $25 20 15 10 10 15 20 25 Quantity At the equilibrium price, the area of consumer surplus is just the number, no symbols or letters; and use decimals as it applies) dollars. (write
Price ($) 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
16. The graph shows the market for sandwiches, and the consumer surplus and producer surplus. 18.00- Price (dollars per sandwich) What is total surplus? Total surplus is $ If the quantity demanded of sandwiches decreases by 120 an hour at each price, the demand curve shifts leftward from Do to D₁. Draw a point at the new equilibrium price and equilibrium quantity. Draw a shape to show the new producer surplus and label it PS. Draw a shape to show the new consumer surplus and label it CS. By how much does total surplus change when demand decreases? 16.00 14.00- 12.00- 10.00- 8.00- 6.00- 4.00- 2.00- Total surplus (1) by $ S D 0.00 0 30 60 90 120 150 180 210 240 270 Quantity (sandwiches per hour) Price (dollars per sandwich) 18.00- 16.00- S 14.00- 12.00- 10.00- 8.00- 6.00- 4.00- 2.00- D₁ Do 0.00 0 30 60 90 120 150 180 210 240 270 Quantity (sandwiches per hour)
6. Producer surplus and price changes The following graph plots a supply curve (orange line) for a group of recent graduates looking to sell used air fryers. Each seller has only a single used air fryer available for sale. Think of each rectangular area beneath the supply curve as the "cost," or minimum price that each seller is willing to accept. Assume that anyone who has a cost that equals the market price is willing to sell their used air fryer. PRICE (Dollars per used airfryer) 240 200 160 120 80 40 0 U 0 Eric 0 D 1 2,80 Ginny ロロ Kenji Lucia 0+ 0 Paolo 2 3 4 QUANTITY (Used air fryers) DO Sharon O 6 Region X (the purple shaded area) represents total producer surplus when the market price is equal to S area) represents when the market price while Region Y (the grey shaded In the following table, indicate which statements are true or false based on the information provided on the previous graph. Statement Assuming each seller receives a positive surplus, Eric will always receive more…
6. The price of the good in the graph below is $5 per unit. Calculate the producers' surplus using the information in Figure 3.3. P $5.00 $3.25 $2.50 11 22 35 S Q