Question 4I paid $5 a ticket for 4 (non-refundable) tickets to a show that I can't use and can't resell, so l'mgoing to give them to my friends. I have two friends whose Marginal Willingness to Pay (MWTP)for the tickets are in the table below. I want to be fair to my friends, so I give them two ticketseach. What is the change in surplus if I allocated them efficiently instead?Do not include the $ sign and remember to include a negative sign if you want to say that surplushas decreased.A'sB'sMWTPMWTP1 $103 $652 $353 $31$55$434 $26$38

Surplus refers to the amount left over after the requirements are being met. The term surplus is…

Answered: I paid $5 a ticket for 4…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Akbar bought a $40 a ticket to a comedy show. He values the show at $167. Birbal values watching the show at $136. If I force Akbar to give his ticket to Birbal what is the change in total surplus? Do not include the $ sign and remember to include a negative sign if you want to say that surplus has decreased
interested in buying a car from a used car dealer. Her maximum willingness to pay for the car is $20 (thousand). Bo, the dealer, is willing to sell the car as long as he receives at least $8 (thousand). Thus, Jane there is a potential surplus or gain from trade of $12 (thousand). Jane and the dealer bargain over the transaction price, p. If they cannot agree on a price, then the transaction does not occur, and neither party receives any surplus. If instead, Bo can only get $5 (thousand) elsewhere, then the price that maximizes the Nash product changes by $ - 1.5 thousand. (Enter your response rounded to one decirmal place and include a minus sign if necessary.) This change in price is in Jane's favor.
If the daily demand curve for gasoline is as provided in the graph above, then how much consumer surplus would consumers receive if the market price for gasoline were $3.00 per gallon? What about for a price of $4.00 per gallon? As a reminder, the formula for the area of a triangle is (1)/(2) * base* height◆◆ What does this say about how consumer welfare changes if the supply of gasoline decreases? Price per Gal. of Gasoline ($USD) 5.50- 5.00- 4.50++ 4.00++ 3.50 3.00 2.50 2.00 A 0 I B C 2 Demand Curve for Gasoline D E F G Demand Curve H 40 50 60 70 80 80 90 100 110 Gal. of Gasoline Purchased (Millions)
In the market for a pair of shoes, Jena is willing to pay $75 for a pair while Jane is willing to pay $85 for a pair. The actual price that each must pay for a pair of shoes is $65. What is the combined amount of consumer surplus of Jena and Jane? Multiple Choice $10 $160 $30 $20
Anderson is willing to pay $12. Kendrick can provide the item for $10, but producing the item imposes a cost of $8 on Talib. If Anderson purchases the item from Kendrick for $11, what is the total surplus from the transaction? (Remember, do not enter the $, and enter the - if TS is negative.)
Consider the market for electric vehicles. The market price of each electric vehicle is $200,000, and each consumer demands no more than one electric vehicle. Suppose that Jake is the only consumer in the electric vehicle market. Their willingness to pay for an electric vehicle is $350,000. Based on Jake's willingness to pay, the following graph shows his demand curve for electric vehicles. Shade the area representing Jake's consumer surplus using the green rectangle (triangle symbols). PRICE (Thousands of dollars) 400 Jake's Demand 350 300 250 200 150 100 50 Market Price 0 0 3 4 5 QUANTITY (Electric vehicles) Jake's Consumer Surplus Now, suppose another buyer, Latasha, enters the market for electric vehicles, and her willingness to pay is $250,000. Based on Latasha's and Jake's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Jake's consumer surplus using the green rectangle (triangle symbols), and…
Suppose that you pay $4 for a delicious burrito. It was so good that you would have been willing to pay $10 for it. How much is your economic (consumer) surplus from this purchase? Group of answer choices $10 $6 $14 $0 $4
Eddie goes to Best Buy to buy a new TV. He is willing to pay $400 for the TV he wants. If the price for the TV is $275, what is Eddie's consumer surplus? $125 $675 $275
When goods are allocated in a way that creates the largest economic surplus: output is evenly allocated across firms. production is minimized. efficient allocation has been achieved. the marginal benefit of the last unit bought is the maximum marginal benefit.
We have three buyers who value a good at $45. There are three possible sellers A, B, C whose marginal costs of production are $20, $30 and $50.Assuming all benefits (and costs) accrue to the buyers (and sellers) what is total surplus created if the buyers and sellers interact in a market? Do not enter the $sign. Notice that you have enough information to only compute surplus for integer values of the good so I should not have to say–assume integer values for good–you should know it.

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