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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Suppose production is reduced by 60 percent for each of the suppliers in this industry. Draw a new market curve and answer the following questions based on your new supply curve and the original demand curve. In Table 3.1, the equilibrium market quantity would be Table 3,3 Individual Demand and Supply Schedules. Quantity Demanded By: Price 4.00 Ali Kelly Jessie Market 4 1 3.00 8 2.00 12 1.00 16 3.00 10 2.00 5 1.00 0 17 units Quantity Supplied by: Price Andy Maria Jose Market 4.00 15 15 11 9 7 5 12 units 25 units 9746 10 units 2 1234 11 7 3
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