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Dominic is willing to pay $12 for a single pizza; Stephany is willing to pay $7; and Tyler is willing to pay $5. There are no other potential consumers for pizza. Cheezbuzz, the supplier of pizza, has a cost of $1 for the first pizza, $2 for the secondpizza, $3 for the third, $4 for the fourth, and so on.
In a closed market equilibrium, the social surplus will be $
$18
If the world price is $10.50, a total of
______
pizzas will be exported.
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- Dominic is willing to pay $12 for a single pizza; Stephany is willing to pay $7; and Tyler is willing to pay $5. There are no other potential consumers for pizza. Cheezbuzz, the supplier of pizza, has a cost of $1 for the first pizza, $2 for the second pizza, $3 for the third, $4 for the fourth, and so on. In a closed market equilibrium, the social surplus will be $The rent on an apartment in a particular building near campus is $1,200 per month. If Min would be willing to pay up to $1,400, Genevieve would be willing to pay up to $1,500, Fraser would be willing to pay up to $1,600, and Kayden would pay no more than $1,000, what is the consumer surplus for this group of students who would like to live in the building? Explain how you calculated this consumer surplusConsumer surplus is calculated by taking the difference of the price consumers are willing to pay and the price actually paid. When the price is $4, the consumer would buy only two bottles because the value the consumer would get from the first bottle is $7. This implies, the surplus is $3. Similarly for the second bottle, the value the consumer would get from consuming it is $5 where the price the consumer will pay is $4, this implies the surplus is $1. Lastly, for the third bottle the value is $3 and the price is $4 so the price surpasses the value, therefore the consumer will not consumer beyond two bottles. The consumer surplus could be calculated as: Consumer Surplus = (7-4) + (5-4) = 3 + 1 = 2 This means the consumer will buy two bottles. If the price falls to $2, the consumer would only buy three bottles because the value the consumer gets from the first bottle valued at $7 versus the $2 paid implies a consumer…
- 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…3.00 0.10 q 20 Figure 9.6 shows an individual's demand curve for time per month spent telecommunicating while driving (talking on the car phone.) A car phone is useless except for talking with somebody who is not in the car. If calls are priced at ten cents per minute, what is the consumer surplus derived from talking? What is the most this person would pay for the car phone? Explain.Consider the market for apartments. The market price of each apartment is $180,000, and each buyer demands no more than one apartment. Suppose that Sean is the only consumer in the apartment market. His willingness to pay for an apartment is $315,000. Based on Sean's willingness to pay, the following graph shows his demand curve for apartments. Shade the area representing Sean's consumer surplus using the green rectangle (triangle symbols). ? PRICE (Thousands of dollars) 360 315 270 225 180 135 45 0 1 Sean's Demand 2 3 QUANTITY (Apartments) Market Price Sean's Consumer Surplus Now, suppose another buyer, Yvette, enters the market for apartments, and her willingness to pay is $225,000. Based on Yvette's and Sean's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Sean's consumer surplus using the green rectangle (triangle symbols), and shade Yvette's consumer surplus using the purple rectangle (diamond…
- 2) The following table displays the reservation values of 10 sellers and 10 buyers in a market for cameras where each individual wants to buy or sell one camera. Buyers Value (5) Sellers Value (S) 100 1 86 2 18 74 60 22 4 26 5 55 35 50 6. 50 7 34 7 65 26 8 75 9 12 9. 85 10 6. 10 100 a) What is the equilibrium price and quantity of cameras? b) What is the social surplus when four highest-value buyers trade with four lowest-value sellers? ) What is the social surplus when eight highest-value buyers trade with eight lowest-value sellers? d) What is the highest possible social surplus in the market? At what quantity does it occur?Homework (Ch 07) Consider the market for apartments. The market price of each apartment is $350,000, and each buyer demands no more than one apartment. Suppose that Lorenzo is the only consumer in the apartment market. His willingness to pay for an apartment is $560,000. Based on Lorenzo's willingness to pay, the following graph shows his demand curve for apartments. Shade the area representing Lorenzo's consumer surplus using the green rectangle (triangle symbols). (?) Lorenzo's Demand 560 490 Lorenzo's Consumer Surplus 420 Market Price 350 280 210 140 70 0 PRICE (Thousands of dollars) O C 18 XIf the inverse demand function for toasters is p= 120 - 0.5q, what is the consumer surplus if the price is 10? Consumer surplus (CS) is $- (Enter your response as an integer.) ост H étv MacBook Air 80 DII DD F1 F2 F3 F4 F5 F6 F7 F8 F9 #3 2$ & 3 4 5 7 8 W R T Y U * CO < CO
- Suppose Biwei is the only consumer in the apple market, why is his marginal use value equal to the apple price? Calculate his consumer surplus (net gain from consumption) and fill in the table. How many apples he would like to buy per week?What would consumer surplus be?Assume that the Demand elasticity of a good is -1 and the Supply elasticity is +2. Assume also that (i) that the price of a complement decreases and therefore Demand shifts out by +2% and (ii) because one of the inputs in production declined in price, the Supply shifts by +2%. In partial equilibrium, the % change in the equilibrium price is -2% -1% 0% 1% 2%