The diagram to the right shows a market in which a price floor has been imposed. Identity the following (enter all values as integers) a. The deadweight loss is $ 35000 b. The transfer of consumer surplus to producers is $(35000) c. Producer surplus with this price floor is $131250 d. Consumer surplus with this price floor is t Price 6.75 5.75 A.. 3.75 2.75 B D F E 35,000 70,000 Quantly Supply Poor Demand

The diagram to the right shows a market in which a price floor has been imposed. Identity the following (enter all values as integers) a. The deadweight loss is $ 35000 b. The transfer of consumer surplus to producers is $(35000) c. Producer surplus with this price floor is $131250 d. Consumer surplus with this price floor is t Price 6.75 5.75 A.. 3.75 2.75 B D F E 35,000 70,000 Quantly Supply Poor Demand

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

The table below represents the market for greeting cards. Suppose there is a price floor set at $6.00. Calculate the surplus caused by the price floor. Price Quantity Supplied Quantity Demanded $2.00 250 800 $3.00 375 650 $4.00 500 500 $5.00 680 430 $6.00 800 250
Problem 3: Price Ceilings Demand for deep fried green chiles at the state fair 3500 3000 2500 2000 1500 1000 0 Price $3.00 $6.00 $9.00 $12.00 $15.00 $18.00 $21.00 Supply of deep fried green chiles at the state fair 100 500 900 1300 1700 2100 2500 a) Use the information in the table to graph supply & demand curves. Show Consumer Surplus and Producer Surplus on your graph. b) Find the equilibrium price and quantity, using both the table and the graph for a more precise answer. Calculate total revenue at the equilibrium. c) Suppose the Mayor decides that deep fried green chiles cost too much. Show the impact of a price ceiling at $6.00 on your graph. What would happen to the quantity produced and consumed? What would happen to total revenue? d) Who benefits from this policy? Who is harmed by this policy? Write out your answer and provide numbers, or refer to the graph, whenever possible. A good answer will explain the meaning of deadweight loss. A perfect answer will also refer to the…
41 Rental Housing Price Market F $2,250 I of E $1,500 B Price $750 Ceiling 2,000 4,000 6,000 Quantity (Q) In the market for rental housing shown in the diagram above, the government has imposed a Price Ceiling at $750. Which of the following would be true? Select one: а. There will be a shortage of 4,000 housing units. b. There will be a shortage of 2,000 housing units. c. There will be neither a shortage nor a surplus because the Price Ceiling will be non-binding. d. There will be a surplus of 2,000 housing units.
Question 3. Refer to the market below where there are four buyers who want to buy a chair. Consumer Name Willingness to Pay 120 110 100 90 80 Sam 70 60 50 40 30 20 10 Mamta Renee Nancy Based on the table, calculate the following: (Make sure to show all the steps) a. Individual and total consumer surplus when the price of the chair was $180. b. Changes in the consumer surplus (both individual and total) when the price increases to $190. Question 4. The graph given below is for the market for a water cooler. $200 $210 E $180 $175 Supply Demand +H 5 10 15 20 25 30 35 40 45 50 55 60 QUANTITY Based on the graph given, calculate the following: (Make sure to show all the steps) a. If the market is at equilibrium, what will be the consumer surplus, producer surplus, and total surplus b. Changes in the producer surplus when the price decreases to $40 per unit. c. Also explain the reasons for those changes (such as if any producers entered or left the market, existing producers' gain or loss).…
Help with this one please
Price $28 $24 $20 $16 $12 $8 $4 Supply. Demand 1,000 2,000 3,000 4,000 5,000 6,000 Quantity of Pizzas C. $12 D. $14 E. None of these answers is correct. Refer to the graph above. If this market is in equilibrium, the consumer surplus generated by the 2,000th pizza is A. $4 B. $8
Figure 7-5 Price P₁ B C a. D b. AX O OC. B Od. C D Refer to Figure 7-5. What area represents producer surplus when the price is P1? Quantity
KE Consider the market for some product X that is represented in the accompanying demand-and-supply diagram a. Calculate the total economic surplus in this market at the free-market equilibrium price and quantity The total economic surplus is $ per day (Round your response to the nearest cent as needed) 57.00 $5.00 45.00 30 00 3300 27.00 21.00 15.00 900 300- 10 25 15 20 Quantity (units per day) 30
Please answer correctly
please answer #5 letter a and b.
Consider the market shown in the figure. Compute the consumer surplus at the equilibrium price and quantity when the market is denoted by D1 and S1. Compute the consumer surplus at the equilibrium price and quantity when the market is denoted by D1 and S2. By how much does consumer surplus decrease? A 1000 B Question 15 Unanswered C D 2000 1500 3000 M 4 MI M W an Q 46 X * Submit
Price S2 Tax B. Amount of the tax D. Quantity Click to view larger image. Look at the provided figure. What area(s) represent producer surplus before the tax? OC+E+ F OC+D+F O C+ D O D F.