QUESTION 15 28 24 20 16 12 8 + 0 P 0 4 8 S1 D1 12 16 20 24 Q 15. Assuming that this market is at equilibrium, what is the "consumer's surplus" and producer's surplus? O a) consumer's surplus is $72; producer's surplus is $36 b) consumer's surplus is $98; producer's surplus is $49 c) consumer's surplus is $32; producer's surplus is $16 O d) consumer's surplus is $144; producer's surplus is $14

QUESTION 15 28 24 20 16 12 8 + 0 P 0 4 8 S1 D1 12 16 20 24 Q 15. Assuming that this market is at equilibrium, what is the "consumer's surplus" and producer's surplus? O a) consumer's surplus is $72; producer's surplus is $36 b) consumer's surplus is $98; producer's surplus is $49 c) consumer's surplus is $32; producer's surplus is $16 O d) consumer's surplus is $144; producer's surplus is $14

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Individual demand and consumer surplus Consider the market for electric vehicles. The market price of each electric vehicle is $135,000, and each consumer demands no more than one electric vehicle. Suppose that Tim is the only consumer in the electric vehicle market. Their willingness to pay for an electric vehicle is $270,000. Based on Tim's willingness to pay, the following graph shows his demand curve for electric vehicles. Shade the area representing Tim's consumer surplus using the green rectangle (triangle symbols). PRICE (Thousands of dollars) 360 t 315 PRICE (Thousands of dollars) 270 225 100 135 12 Homework (Ch 07) Now, suppose another buyer, Alyssa, enters the market for electric vehicles, and her willingness to pay is $180,000. 300 Based on Alyssa's and Tim's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Tim's consumer surplus using the green rectangle (triangle symbols), and shade…
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Consumer surplus exists when O A) consumers value the good more highly than what they must pay to buy it. B) it costs less to produce goods than buyers must pay for them. C) the marginal benefit of the good is always equal to or less than the price of the good. D) the price of the good is greater than the marginal cost of producing a unit of the good.
Refer to the graph shown. Initially, the market is in equilibrium where the demand curve intersects SO. In the initial equilibrium, consumer surplus is equal to: Price SabronTMNTO 10 9 8 7 6 E5 4 3 2 1 0 750 O 1.500 O 2.250 O 3,000 B C 600 840 SO $1 Demand 1200 Quantity
Assume an equilibrium price of $7 and equilibrium quantity of 8 units at demand D and supply S2 in the graph shown. Total surplus would be? S2 $11 $9 $7 $6 $3 Assuming the market is in equilibrium in the graph shown with demand D, supply S1 and equilibrium quantity of 5 units. Total surplus is: S2 $11 $9 $7 $6 $3
Shana decides to buy a pair of used ripped jeans for $80. She was willing to pay $100. When her friend tanya sees the jeans, she loves them and thinks they are worth $165. So she offers shana $135 for the jeans, and shana accepts. Shana and tanya are both thrilled with the exchange. The total surplus received by both shana and tanya is $ ? Part 2 Suppose that shana purchased the jeans from Maries boutique. Marie and other boutique owners in town are upset that customers like shana buy jeans at their stores, and then resell them for a higher price. Marie and the other owners convince the city government to pass a law preventing such resale. Assuming the law is successful, how much surplus is lost if shana cannot sell the jeans to tanya? $. ?
Canvas D Question 9 Figure 4-1 Price (dollars per burrito) $2.50 2.00 1.50 1.00 Figure 4-1 shows Arnold's demand curve for burritos. Demand Quantity (burritos) Refer to Figure 4-1. If the market price is $1.00, what is the consumer surplus on the third burrito? O $0.50 O $1.00 O $1.50 $7.50 1 pts Recording
2. Individual demand and consumer surplus Consider the market for electric vehicles. The market price of each electric vehicle is $280,000, and each consumer demands no more than one electric vehicle. Suppose that Manuel is the only consumer in the electric vehicle market. Their willingness to pay for an electric vehicle is $490,000. Based on Manuel's willingness to pay, the following graph shows his demand curve for electric vehicles. Shade the area representing Manuel's consumer surplus using the green rectangle (triangle symbols). Manuel’s Consumer Surplus012345560490420350280210140700PRICE (Thousands of dollars)QUANTITY (Electric vehicles)Manuel’s DemandMarket Price Now, suppose another buyer, Poornima, enters the market for electric vehicles, and her willingness to pay is $420,000. Based on Poornima's and Manuel's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Manuel's…
15. Suppose a supply curve(in dollars per unit) is S(q)= 20+7e0.014 . Find the price at which 7 units will be supplied and compute the producer's surplus at that price. Make sure to state in complete sentence with correct units.
3) Suppose that the demand is described by the following function: P=397-2Q. Supply is described by P=100+0.7Q. The graphs of demand and supply are represented below 450 400 350 300 250 200 150 100 50 0 0 50 100 150 b. The equilibrium price equals space below. 200 a. On the graph above, label the axes and the lines that represent demand and supply. Show your calculations in the empty C. Calculate the consumer surplus and show your calculations below (2) Suppose that the government imposes per-unit tax of $30 per each unit sold. As a result, the consumer retail price for the product increases to $200. d. What is the quantity of product sold after the tax is imposed? Q = e. The price received by the suppliers after the tax is imposed is f. Has the consumer surplus changed after the tax is imposed? If yes, then how did it change (increased or decreased)? Shade the area that represents the consumer surplus after the tax is imposed, on the graph (1) g. The deadweight loss to the economy…
8. Consumer and Producer Surplus Suppose Gilberto is the only seller in the market for bottled water and Charles is the only buyer. The following lists show the value Charles places on a bottle of water and the cost Gilberto incurs to produce each bottle of water: Charles's Value Gilberto's Costs Value of first bottle: $10 Cost of first bottle: $1 Value of second bottle: $7 Cost of second bottle: $3 Value of third bottle: $3 Cost of third bottle: $7 Value of fourth bottle: $1 Cost of fourth bottle: $10 The following table shows their respective supply and demand schedules: Price Quantity Supplied Quantity Demanded More than $10 4 $7 to $10 3 1 $3 to $7 2 2 $1 to $3 1 3 $1 or less 4