Consumer surplus is the a. amount of a good consumers get without paying anything. b. amount a consumer is willing to pay minus the market price. c. value of a good to a consumer. d. market price minus what the consumer is willing to pay.
Consumer surplus is the a. amount of a good consumers get without paying anything. b. amount a consumer is willing to pay minus the market price. c. value of a good to a consumer. d. market price minus what the consumer is willing to pay.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
Problem 9PA
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![QUESTION 20
Shalimar company incurs a cost of $50 to produce a jacket and on the other hand Dilshad company incurs a cost of $7o to produce a jacket. In which of the following situations both companies will
experience a gain in the producer surplus?
In the case when the price of jacket increase from $40 to $55.
Oa.
In the case when the price of jacket increase from $55 to $70.
Ob.
In the case when the price of jacket increase from $55 to $75.
Oc.
All the other prices indicated in other options will cause loss in producer surplus.
O d.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6be53d9a-fc41-40fe-95cc-818e2301b0c8%2Fd20a71a3-0617-4698-855e-01b1165fa844%2Fowdfiag_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 20
Shalimar company incurs a cost of $50 to produce a jacket and on the other hand Dilshad company incurs a cost of $7o to produce a jacket. In which of the following situations both companies will
experience a gain in the producer surplus?
In the case when the price of jacket increase from $40 to $55.
Oa.
In the case when the price of jacket increase from $55 to $70.
Ob.
In the case when the price of jacket increase from $55 to $75.
Oc.
All the other prices indicated in other options will cause loss in producer surplus.
O d.
![QUESTION 12
Consumer surplus is the
a. amount of a good consumers get without paying anything.
b. amount a consumer is willing to pay minus the market price.
c. value of a good to a consumer.
d. market price minus what the consumer is willing to pay.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6be53d9a-fc41-40fe-95cc-818e2301b0c8%2Fd20a71a3-0617-4698-855e-01b1165fa844%2F97s3lx_processed.png&w=3840&q=75)
Transcribed Image Text:QUESTION 12
Consumer surplus is the
a. amount of a good consumers get without paying anything.
b. amount a consumer is willing to pay minus the market price.
c. value of a good to a consumer.
d. market price minus what the consumer is willing to pay.
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