Patricia decides to buy a pair of boots for $95.00. She was willing to pay $120.00. When her friend Cecilia sees the boots, she lovesthem and thinks they are worth $200.00. So she offers Patricia $150.00 for the boots, and Patricia accepts. Patricia and Cecilia are boththrilled with the exchange.The total surplus received by both Patricia and Cecilia is $ 105Part 2Suppose that Patricia purchased the boots from Marie's Boutique. Marie and other boutique owners in town are upset that customerslike Patricia buy boots at their stores, and then resell them for a higher price. Marie and the other owners convince the city governmentto pass a law preventing such resale. Assuming the law is successful, how much surplus is lost if Patricia cannot sell the boots to Cecilia?$ 55

###(a)To calculate the total surplus received by both Patricia and Cecilia, we need to determine the…

Answered: Patricia decides to buy a pair of boots…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Andy buys a new floor mat for his car for $198 and receives consumer surplus of $53 on the purchase. His willingness to pay (in $) for the floor mat is therefore? The result should be an integer number, no decimals (e.g. if the result is 3.67, write 4.) Your Answer:
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
10) Use the figure below to answer the following question. The equilibrium point in the market is the point at which the S and D curves intersect. Price P₁ 0 a C Q₁ b d Q₂ @ Quantity S D If actual production and consumption occur at Q₁ A) consumer surplus is maximized. C) missing surplus of e + d occurs. 10) B) missing surplus of b + d occurs. D) economic surplus is maximized.
only typed answer Albin’s inverse demand function for pretzels is p( q) = 49 – 6 q, where q is the number of pretzels that he consumes. Currently, the price is $1 per pretzel. If the price of pretzels rises to $7 per pretzel, the change in Albin’s consumer surplus is a. –$56. b. –$42. c. –$45. d. –$90. e. –$42.
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
Suppose that Lucy's demand for private concerts (performed by Schroeder) is given by the following equation 5 QD = 15 2 - Suppose that the cost of concerts is $2. What is Lucy's Consumer Surplus? a. 10 b. 15 c. 12.50 d. 20
solve in full detail
3. Suppose Tyra's maximum willingness to pay for a pair of shoes is $60. The price of the shoes is $45. What is her consumer surplus in this example? a) $105 b) $60 c) $45 d) $15 e) $5
Find the consumer surplus at the equilibrium 13) D(x)= 5 – 3x; x = 1 A $1.50 B) $6
8. Consumer and Producer Surplus Suppose Charles is the only seller in the market for bottled water and Yakov is the only buyer. The following lists show the value Yakov places on a bottle of water and the cost Charles incurs to produce each bottle of water: Yakov's Value Value of first bottle: $7 Value of second bottle: $5 Value of third bottle: $3 Value of fourth bottle: $1 Charles's Costs Cost of first bottle: $1 Cost of second bottle: $3 Cost of third bottle: $5 Cost of fourth bottle: $7 The following table shows their respective supply and demand schedules: Price Quantity Demanded Quantity Supplied $1 or less 4 о $1 to $3 3 1 $3 to $5 2 2 $5 to $7 1 3 More than $7 0 4 Use Charles's supply schedule and Yakov's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $4, and $6. Enter these values in the following table. Price Quantity Demanded Quantity Supplied 2 4 A price of brings supply and demand into equilibrium. At the equilibrium price, consumer…
If producers surplus is $33 and the consumer surplus is $12 Find total surplus
Ch7 Practice Sheet 7 1) When the quantities we are dealing with are relatively large, we can identify total consumer surplus on a graph as the a) area above the demand curve and below the price. b) area above the demand curve and above the price. c) area below the demand curve and below the price. d) area below the demand curve and above the price. 2) As the price of a good increases, consumer surplus a) increases. b) decreases. c) stays the same. d) may increase, decrease, or stay the same. 3) As the price in a market falls, a) consumer surplus decreases because some consumers leave the market, reducing consumer surplus. b) consumer surplus decreases because the consumers who remain in the market receive a lower consumer surplus. c) consumer surplus increases because consumers who would have bought the good at the higher price earn more consumer surplus, and new consumers enter the market who also earn consumer surplus. d) consumer surplus…

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