Refer to Table 6.6 . If the six people listed in the table are the only producers in the market and the equilibrium price is $6 (not the $8 shown), how much producer surplus will the market generate? TABLE 6.6 Producer Surplus(2)(3)MinimumActual Price(4)(1)Acceptable(EquilibriumPrice)ProducerPersonPriceSurplus$5 (= $8 – $3)4 (= $8 – $4)3 (= $8 – $5)2 (= $8 – $6)I (= $8 – $7)0 (= $8 – $8)Carlos$3$8Courtney48Chuck58CindyCraig6878Chad88Co

Producers or sellers offer supply in the market at different price levels. Producer surplus is the…

TABLE 6.6 Producer Surplus (2) (3) Minimum Actual Price (4) (1) Acceptable (Equilibrium Price) Producer Person Price Surplus $5 (= $8 – $3) 4 (= $8 – $4) 3 (= $8 – $5) 2 (= $8 – $6) I (= $8 – $7) 0 (= $8 – $8) Carlos $3 $8 Courtney 4 8 Chuck 5 8 Cindy Craig 6 8 7 8 Chad 8 8 Co

TABLE 6.6 Producer Surplus (2) (3) Minimum Actual Price (4) (1) Acceptable (Equilibrium Price) Producer Person Price Surplus $5 (= $8 – $3) 4 (= $8 – $4) 3 (= $8 – $5) 2 (= $8 – $6) I (= $8 – $7) 0 (= $8 – $8) Carlos $3 $8 Courtney 4 8 Chuck 5 8 Cindy Craig 6 8 7 8 Chad 8 8 Co

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

Consider the market for mountain bikes. The following graph shows the demand and supply for mountain bikes before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of mountain bikes in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. (screen shot 1) Suppose the government imposes an excise tax on mountain bikes. The black line on the following graph shows the tax wedge created by a tax of $80 per bike. First, use the tan quadrilateral (dash symbols) to shade the area representing tax revenue. Next, use the green point (triangle symbol) to shade the area representing total consumer surplus after the tax. Then, use the purple point (diamond symbol) to shade the area…
Refer to the table below. (2) Minimum Acceptable (1) Person Price Carlos Courtney Chuck Cindy Craig Chad $ 3 4 5 6 7 8 (3) Actual Price (Equilibrium Price) $7 7 7 7 7 7 If the six people listed in the table are the only producers in the market, and the equilibrium price is $7, how much producer surplus will the market generate? Instructions: Enter your answer as a whole number. Total producer surplus = $
Suppose the following graph shows the demand for, and supply of, apartments in New York City. Use the black point (plus symbol) to indicate the equilibrium monthly rent and quantity of apartments in the absence of price controls. Then use the green point (triangle symbol) to fill the area representing consumers' surplus, and use the purple point (diamond symbol) to fill the area representing producers' surplus. MONTHLY RENT (Dollars per apartment) 2800 2600 2400 2200 2000 1800 0 Demand Supply 0.8 3.2 QUANTITY OF APARTMENTS (Millions per month) 1.6 2.4 4.0 Equilibrium A CS PS ?
Solve part d and e
Consumer surplus is equal to the difference between the maximum price a buyer is willing to pay and the market price. the minimum price a seller is wiling to accept and the market price the minimum price a buyer is willing to pay and the market price the maximum price a seller is willing to accept and the market price Consumer surplus is shown graphically as the area under the demand curve and above the market price. above the supply curve and below the market price. above the supply curve and above the market price under the demand curve and below the market price.
Suppose that you pay $4 for a delicious burrito. It was so good that you would have been willing to pay $10 for it. How much is your economic (consumer) surplus from this purchase? Group of answer choices $10 $6 $14 $0 $4
None
Suppose there are three identical blenders available to be purchased. Buyer 1 is willing to pay $30 for one, buyer 2 is willing to pay $25 for one, and buyer 3 is willing to pay $20 for one. If the price is $25, how many blenders will be sold and what is the value of consumer surplus in this market? * a. One blender will be sold and consumer surplus is $30. b. One blender will be sold and consumer surplus is $5. c. One blender will be sold and producer surplus is $5. d. Three blenders will be sold and consumer surplus is $0. e. None of these.