Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Statement Even though I was willing to pay as much as $35 for a crew neck, I bought a crew neck for just $29. I sold a swimsuit for $61 on OfferUp last week. The next day, someone messaged me offering $195 for it. I sold a polaroid camera for $197, even though I was willing to accept as little as $190 in exchange for it. Consumer Producer Surplus Surplus Neither Training

Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Statement Even though I was willing to pay as much as $35 for a crew neck, I bought a crew neck for just $29. I sold a swimsuit for $61 on OfferUp last week. The next day, someone messaged me offering $195 for it. I sold a polaroid camera for $197, even though I was willing to accept as little as $190 in exchange for it. Consumer Producer Surplus Surplus Neither Training

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following diagram shows supply and demand in the market for smartphones. Use the black point (plus symbol) to indicate the equilibrium price and quantity of smartphones. 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. PRICE (Dollars per phone) 300 270 240 210 180 150 60 30 0 0 Demand Supply 20 80 100 120 140 160 180 200 40 60 QUANTITY (Millions of phones) Total surplus in this market is $ million. Equilibrium Consumer Surplus Producer Surplus ?
Which of the following would lead to the creation of some consumer surplus? Sam refuses to pay $10 for a haircut because it is only worth $8 to him. Fred buys a car for $4000, the maximum amount that he is willing to pay. Danette pays $30 a month for phone service, but it is worth $70 a month to her. When Florence purchases a candy bar for 50 cents, she uses a $20 bill to pay for it.
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.)
Consumer surplus is a measure of the difference between: a) The price which a consumer has to pay and the cost of producing the good (in a diagram, the area between the market price, and the supply curve). b) The consumer’s willingness to pay, and the cost of production (the area between the demand curve and the supply curve). c) The value which a consumer places on a unit of the good, and the market price (the area between the demand curve and the market price line). d) The marginal revenue from sales and the marginal cost of sales (the area between the marginal revenue and the marginal cost curves).
if the price fall from p0 to p1, the change in consumer surplus is equal to what area?
Each rectangle on the graph corresponds to a particular seller in this market: blue (circe symbols) for Andrew, green (triangle symbols) for Beth, purple (diamond symbols) for Darnell, tan (dash symbols) for Eleanor, and orange (square symbols) for Jacques. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at a market price of $70. (Note: If a person will not sell a motor scooter at the market price, indicate this by leaving their rectangle in its original position on the palette.) ? PRICE (Dollars per motor scooter) 160 140 120 100 180 60 40 20 0 0 Andrew 2 K Bet Darnell Jacques Eleanor 5 3 QUANTITY (Motor scooters) Market Price 6 7 8 ITI Andrew Beth Damell Eleanor 8 8 Jacques
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Scenario: The government requires consumers to pay a $34 tax on each unit of french fries that they buy. Show the most likely effect of this on the Demand curve for french fries. Price Demand for french fries Quantity
Suppose the total demand for wheat and the total supply of wheat per month in the Kansas City grain market are as shown below: Suppose government establishes a price ceiling of $3.70 for wheat. What might prompt it to establish this price ceiling? Explain carefully the main effects. Demonstrate your answer graphically.
Calculate the producers' surplus for the supply equation at the indicated unit price p. HINT [See Example 2.] (Round your answer to the nearest cent.) p = 90 + q; p = 230
You own a company that produces coasters. You set the price at $10 for a set of six coasters. Then you produced 10,000 sets. After one year, you realize you have a surplus of 4,000 sets. What steps would you take to reach equilibrium?
You’d be willing to pay $200 for a daylong admission ticket to a theme park. The cost of the ticket is $120. Your consumer surplus is: