Price (dollars per gallon) 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 DNovember Djuly 100 200 300 400 500 600 Quantity (gallons per day) 2. The graph above shows the demand and supply of ice cream in a small town in July and November. In July, the equilibrium price is $3.00 and the equilibrium quantity is 200 gallons of ice cream a day. In November, the equilibrium price is $2.50 and the equilibrium quantity is 100 gallons a day. a. What happens to consumer surplus and producer surplus in November compared to July? Calculate the amount of consumer/producer in November and July. b. Calculate the amount of total surplus in November and July.
Price (dollars per gallon) 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 DNovember Djuly 100 200 300 400 500 600 Quantity (gallons per day) 2. The graph above shows the demand and supply of ice cream in a small town in July and November. In July, the equilibrium price is $3.00 and the equilibrium quantity is 200 gallons of ice cream a day. In November, the equilibrium price is $2.50 and the equilibrium quantity is 100 gallons a day. a. What happens to consumer surplus and producer surplus in November compared to July? Calculate the amount of consumer/producer in November and July. b. Calculate the amount of total surplus in November and July.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter3: Demand And Supply
Section: Chapter Questions
Problem 1SCQ: Review Figure 3.4. Suppose the price of gasoline is 1.60 per gallon. Is the quantity demanded higher...
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Question
![Price (dollars per gallon)
5.50
5.00
4,50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0
DNovember Djuly
os
100 200 300 400 500 600
Quantity (gallons per day)
2. The graph above shows the demand and supply of ice cream in a small town in July and
November. In July, the equilibrium price is $3.00 and the equilibrium quantity is 200 gallons
of ice cream a day. In November, the equilibrium price is $2.50 and the equilibrium quantity
is 100 gallons a day.
a. What happens to consumer surplus and producer surplus in November compared to
July? Calculate the amount of consumer/producer in November and July.
b. Calculate the amount of total surplus in November and July.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faaddc3fc-ec97-4ca6-aaae-bb996b719b45%2F87016f52-80c5-4862-b1c3-bdf5b8625285%2Fo3syzhc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Price (dollars per gallon)
5.50
5.00
4,50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0
DNovember Djuly
os
100 200 300 400 500 600
Quantity (gallons per day)
2. The graph above shows the demand and supply of ice cream in a small town in July and
November. In July, the equilibrium price is $3.00 and the equilibrium quantity is 200 gallons
of ice cream a day. In November, the equilibrium price is $2.50 and the equilibrium quantity
is 100 gallons a day.
a. What happens to consumer surplus and producer surplus in November compared to
July? Calculate the amount of consumer/producer in November and July.
b. Calculate the amount of total surplus in November and July.
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