Price $28 26- 24 22 20- 18.- 16 14- 12 10 8 6 4 2- 0 10 30 50 70.90 110 130 150 Quantity Refer to Figure 7-6. If this market were currently at a quantity of 110, what would we know? a. Consumer surplus would be greater than producer surplus. b. The cost to sellers is greater than the value to buyers. X OC. The producers' willingness to sell is greater than the consumers' willingness to pay d. The value to buyers is greater than the cost to sellers.

Price $28 26- 24 22 20- 18.- 16 14- 12 10 8 6 4 2- 0 10 30 50 70.90 110 130 150 Quantity Refer to Figure 7-6. If this market were currently at a quantity of 110, what would we know? a. Consumer surplus would be greater than producer surplus. b. The cost to sellers is greater than the value to buyers. X OC. The producers' willingness to sell is greater than the consumers' willingness to pay d. The value to buyers is greater than the cost to sellers.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1
Help with this one please
Figure 7-5 Price P₁ B C a. D b. AX O OC. B Od. C D Refer to Figure 7-5. What area represents producer surplus when the price is P1? Quantity
1. What is meant by producer surplus? a It is the difference between a producer's minimum selling price and the actual price. b It is the total quantity of a good produced by the seller. c It is the difference between the producer's marginal cost and the price. d It is a measure of the total benefit to producers resulting from the purchase of an input.
3. Effects of rent control Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. The future supply of rental housing units increases. Black markets develop. Efficient use of housing space results. Nonprice methods of rationing emerge.
The market for burritos in a college town is shown to the right. At a price of $7, how much excess demand is there? A. 0; there is excess supply at $7. B. 20 units C. 30 units D. 10 units C… Price 16- 14- 12- 10- 8- 6- 4- 2- 0 0 20 40 60 80 Quantity 100 S D 120 140 160
Figure 2 Pl P2 Price B C Select one: D a. ACG O b. BCGD O C. DFG O d. ABD. Q1 G Q2 Demand Refer to Figure 2. Which area represents the increase in consumer surplus when the price falls from P1 to P2? Quantity 4
Price 300 275 + 250 225 200 175 + 150+- 125 + 100 75+ 50 25 S D 25 50 75 100 125 150 175 200 Quantity D' Show Transcribed Text C. $2,185 d. $625 If the supply curve is S and the demand curve shifts from D to D', What will be the increase in the producer surplus due to new producers entering the market? a. $5,625 b. $1,500
Figure 7-6 Price $28 26- 24- 22 20 18.- 16 14 12 10 8 6 4 2 0 10 30 50 70 90 110 130 150 Quantity Refer to Figure 7-6. At the equilibrium price, what would consumer surplus be? a. $1120 * b. $480 C. $640 d. $1280.
3. Effects of rent control Rent controls require that landlords set apartment prices below the equilibrium price level. An immediate effect is an apartment rental shortage (excess demand for apartments), because at the regulated price the quantity of apartments demanded is greater than the quantity supplied. When landlords are prevented by cities from charging market rents, which of the following listed outcomes are common in the long run? Check all that apply. The quantity of available rental housing units falls. Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units. Nonprice methods of rationing emerge. Efficient use of housing space results.
Figure 4-4 Price (dollars per pound) $9 6 3 4,000 8,000 12,000 Supply Demand Quantity (pounds) Refer to Figure 4-4. The figure above represents the market for pecans. Assume that this is a competitive market. If 4,000 pounds of pecans are sold, O consumer surplus equals zero. O the marginal benefit of each of the 4,000 pounds of pecans equals $3. O the deadweight loss is equal to $12,000. O marginal benefit is equal to marginal cost.
Figure 7-4 Price P₂ P₁ o с D 9₂ B E 82 Quantity Refer to Figure 7-4. What will NOT occur when the price falls from P2 to P1? a. The total quantity sold in the market increases. b. The sellers who still sell the good are worse off because they now receive less. OC. The total cost of what is now sold by sellers is actually higher. X d. Producer surplus would fall by area A + B.