Producer surplus is the difference between the price consumers pay and the supply curve The graph on the right depicts the supply and demand curves for a market in competitive equilibrium 1.) Using the triangle drawing tool, highlight the area on the graph that represents producer surplus. Label this area PS Carefully follow the instructions above and only draw the required object Using your graph, calculate the producer surplus in this market Producer surplus is (Round your response to two decimal places) 7- Quantity

Producer surplus is the difference between the price consumers pay and the supply curve The graph on the right depicts the supply and demand curves for a market in competitive equilibrium 1.) Using the triangle drawing tool, highlight the area on the graph that represents producer surplus. Label this area PS Carefully follow the instructions above and only draw the required object Using your graph, calculate the producer surplus in this market Producer surplus is (Round your response to two decimal places) 7- Quantity

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 11P

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Table 3.9 illustrates the markets demand and supply for cheddar cheese. Graph the data and find the equilibrium. Next, create a table showing the change in quantity demanded or quantity supplied, and a graph of the new equilibrium, in each of the following situations: The price of milk, a key input for cheese production, rises, so that the supply decreases by 80 pounds at every price. A new study says that eating cheese is good for your health, so that demand increases by 20 at every price.
Producer surplus is the difference between the price consumers pay and the supply curve The graph on the right depicts the supply and demand curves for a market in competitive equilibrium 1.) Using the triangle drawing tool, highlight the area on the graph that represents producer surplus. Label this area 'PS". Carefully follow the instructions above and only draw the required object. Using your graph, calculate the producer surplus in this market Producer surplus is (Round your response to two decimal places) Price Quantity D COO
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Is The following graph plots the supply and demand curves in the market for VR headsets. Use the black point (plus symbol) to indicate the equilibrium price and quantity of VR headsets. 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 headset) 400 300 320 200 240 200 160 120 BO 40 0 0 Demand Supply 75 400 525 600 676 750 150 225 300 375 QUANTITY (Millions of headsets) Total surplus in this market is $ million, Equilibrium A Consumer Surplus ◊ Producer Surplus Bas & Pant course 0x
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Complete the following
D. Prouucer surpiuS Tor a group o sellers The following graph shows the supply curve for a group of sellers in the U.S. market for laptops (orange line). Each seller has only one laptop to sell. The market price of a laptop is shown by the black horizontal line at $90. Each rectangle on the graph corresponds to a particular seller in this market: blue (circle 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 laptop at a market price of $90. (Note: If a person will not sell a laptop at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) 160 140 Andrew 120 Jacques Eleanor 100 Beth Market Price 80 Darnell Darnell 60 40 Beth…
What is producer surplus ?
EC 252 Midterm 2 SA Practice 2. Use the following graph to answer questions A-C: Supply and Demand for Lumber 55 50 45 40 35 30 25 20 15 10 5 35 45 40 50 40 45 55 45 50 60 70 50 55 65 60 70 75 55 65 75 80 70 80 Supply 75 85 Demand 2 Demand 1 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 A) Suppose Demand 1 is the market demand curve. Further, suppose Demand 2 represents the market demand curve when there is a tax imposed on consumers. What is the per unit amount of the tax? What is the share of the burden of the tax? B) What is the total revenue collected by the tax? Will there be a dead weight loss as a result of the tax? If so, how large is it?
The graph shows the market for hamburgers, and the consumer surplus and producer surplus. What is total surplus? Total surplus is $ If the quantity demanded of hamburgers decreases by 80 an hour at each price, the demand curve shifts leftward from D, to D₁. Draw a point at the new equilibrium price and equilibrium quantity. Draw a shape to show the new producer surplus and labelit PS. Draw a shape to show the new consumer surplus and label it CS. By how much does total surplus change when demand decreases? Total surplus by $. 0 9.00 8.00- 7.00- 6.00- 5.00- 4.00- 3.00 2.00 1.00- 0.00 Price (dollars per hamburger) 0 20 9.00 8.00 7.00- 6.00- 5.00- 4.00- 3.00 2.00 S 1.00 0.00- Price (dollars per hamburger) 0 D₁ Do 40 60 80 100 120 140 160 180 Quantity (hamburgers per hour) S D 20 40 60 80 100 120 140 160 180 Quantity (hamburgers per hour) Q Q Q ✔ >>> Draw only the objects specified in the question.
Q23
1. Years ago, an apple producer argued that the United States should enact a tariff, or a tax, on imports of bananas. His reasoning was that “the enormous imports of cheap bananas into the United States tend to curtail the domes-tic consumption of fresh fruits produced in the United States.”. a. Was the apple producer assuming that apples and bananas are substitutes or complements? Briefly explain. b. If a tariff on bananas acts as an increase in the cost of supplying bananas in the United States, use two demand and supply graphs to show the effects of the apple producer’s proposal. One graph should show the effect on the banana market in the United States, and the other graph should show the effect on the apple market in the United States. Be sure to label the change in equilibrium price and quantity in each market and any shifts in the demand and supply curves.