Suppose that a market consists of 100 buyers who are each willing to buy at most one unit of a good Wiingness to pay is equal to $20 for the first 20 buyers $18 for the following 10 buyers $12 for the following 20 buyers $6 for the following 20 buyers $4 for the following 30 buyers What happens to consumer surplus if price falls from $7 to $5? O A. rises by $120 O B. falls by $200 OC. rises by $100 O D. rises by $200 O E. None of the above

Suppose that a market consists of 100 buyers who are each willing to buy at most one unit of a good Wiingness to pay is equal to $20 for the first 20 buyers $18 for the following 10 buyers $12 for the following 20 buyers $6 for the following 20 buyers $4 for the following 30 buyers What happens to consumer surplus if price falls from $7 to $5? O A. rises by $120 O B. falls by $200 OC. rises by $100 O D. rises by $200 O E. None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Figure 1 24 22 18 16 6 Price 120 160 Social cost (private cost and external cost) Supply (private cost) -Demand (private value) Quantity
Answer the given question with a proper explanation and step-by-step solution.
Figure 4-1 Price (dollars per ice cream cone) $3.50 O $9.00 O $1.50 3.00 O $0 2.50 $7.50 2 Figure 4-1 shows Kendra's demand curve for ice cream cones. 3 Refer to Figure 4-1. If the market price is $2.50, what is Kendra's consumer surplus? Demand Quantity (ice cream cones)
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
Suppose that at a price of $2, 300 apples are sold per day. The elasticity of supply is 1 when the price increases from $2 to $4 in the short run and elasticity of supply is 1.5 when the price Increases from $2 to$4 in the long run. (Use midpoint elasticity formula). How much seller will sell the apples if the price increases from $2 to $4 in the long run? O O 900 0 600 1500
Use the figure below to answer the following questions. Price (dollars per unit) 10 Select one: O A. $4 O B. $10 O C. $7 O D. $3 O E. $1 8 6 4 2 0 2 4 6 Figure 5.2.1 O 8 10 Quantity (units) Consider Figure 5.2.1. When the price is $4 a unit, what is the consumer surplus from the second unit of the good?
Economic efficiency is O A. a market outcome in which the marginal benefit to consumers of the last unit produced is greater than its marginal cost of production and in which the sum of consumer surplus and producer surplus is at a maximum. O B. a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and in which the sum of consumer surplus and producer surplus is at a maximum. O C. a market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and in which the sum of consumer surplus and producer surplus is not at a maximum. O D. a government outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and in which the sum of consumer surplus and producer surplus is at a maximum.
4
f 20 18 16 14 12 10 8 6 4 2 + Consumer 1 Demand 2 4 6 Figure 4-2 8 10 12 14 16 18 20 QUANTITY PRICE Refer to Figure 4-2. If these are the only two consumers in the market, then the market quantity demanded at a price of $15 is O a. 0 units. Ob. 15 units. O c. 25 units. Od. 10 units. 30 27 24 21 18 15 12 9 6 3 Consumer 2 Demand 5 10 15 20 25 30 35 40 45 50 QUANTITY
O a. -520 O'b.-600 OC. -560 O d.-480 QUESTION 25 Tim loves to collect Lego architecture sets. Suppose that Tim's willingness to pay for different Lego sets is given below: Set Willingness.to Pay Sears Tower 40 Hancock Center 70 Fallingwater 100 Shanghai 80 Robie House 80 Suppose that Tim can purchase a lego bundle with all 5 sets for the price of $200, what is his CS from the bundle? a. 150 O b. 130 O c. 170 O d. 200 OUESTION 26
Air fares are generally lower on Tuesdays and Wednesdays each week. What is a likely explanation for this occurrence? O Supply is relatively variable, and lower demand on these days leads to a lower equilibrium price. O Demand is relatively variable, and lower supply leads to a lower equilibrium price. Lower levels of both supply and demand on these days lead to a lower equilibrium price. Supply is relatively fixed, and lower demand on these days leads to a lower equilibrium price. Demand is relatively fixed, and lower supply leads to a lower equilibrium price. OO
What is the market equilibrium price and what is the market equilibrium quanity and why?