The following table shows Carly and Emma's maximum willingness to pay for paint supplies and drawing suppliesfrom the same seller. Assuming MC=0, how much producer surplus does the firm earn if they price the goodsindividually? How much producer surplus does the firm earn if they bundle the goods?Maximum WillingnessCarlyTo PayEmmaPaint$15.00$60.00SuppliesDrawing$50.00$30.00Suppliesa. $120; $130b. $110; $130c. $120; $90d. $110; $150

Step 1: To find producer surplus, determine market demand for each good (individually and bundled),…

Answered: The following table shows Carly and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Use the graph below to find the value of consumer surplus and producer surplus. P. $15.00 $5.00 200 Q What is the value of Consumer Surplus? Please enter your answer as whole dollar amounts with no decimals and do not type in your answer as words. (ie. $4000 not $4000.00 or "Four thousand dollars"). What is the value of Producer Surplus? Please enter your answer as whole dollar amounts with no decimals and do not type in your answer as words. (ie. $4000 not $4000.00 or "Four thousand dollars"). What is the value of Total Surplus? Please enter your answer as whole dollar amounts with no decimals and do not type in your answer as words. (ie. $4000 not $4000.00 or "Four thousand dollars").
Assume that a price floor of $320 has been implemented and there are no wasteful quality improvements. What are the total gains from trade (total surplus) with a price floor of $320? Hint: enter your answer as a number only with no $ sign Example: if the answer is $10,000, enter 10,000 2,400
Suppose Home is a small exporter of wheat. At the world price of 100 US dollars per tonne, Home growers export 20 tons of wheat. Now suppose the Home government decides to support its domestic producers with an specific export subsidy of 40 US dollars per tonne. Use Figure 1 to answer the following questions: Figure 1: Supply and Demand for Wheat at Home Home price 140 100 X 10 20 40 50 Supply Demand Quantity (a) Explain why consumer and producer surplus can be used to gauge the change in welfare caused by the export subsidy on individuals and firms.
ed Graphically, producer surplus is measured as the area Multiple Choice under the demand curve and below the actual price. under the demand curve and above the actual price. above the supply curve and above the actual price. above the supply curve and below the actual price.
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 ?
For years the government has subsidized higher education through grants; consider the demand and supply for college credit hours at a local private liberal arts collegeQD = 6,000 – 300PQS = 700P – 500 where P is the price, in hundreds of dollars, and Q is the number of credit hours per semester. Suppose the government subsidizes credit hours at a rate of $120 per hour. Calculate changes in consumer surplus. What is the size of the deadweight loss?
The sum of consumer surplus and producer surplus in the Market is $120 If the maximum willingness to pay of the buyer is $60 and the market price is $25 Calculate the producer surplus with given information
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.
The table below shows four buyers' willingness to pay for a ticket to a Liverpool football match. Buyer Paul John Ringo George Willingness to pay $100 $80 $60 $40 How much total consumer surplus will the four of them receive if the price of a ticket to a Liverpool football match is $50? $

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