The graph below shows the supply and demand curves for beer. 12+ 11 10 Demand 9P FlooT 8 7+ 6- 4. 3. 27 Supply 10 20 30 40 50 60 70 80 90 100 110 12 Quantity of beer 24. What is the size of consumer surplus when there is no government price control? 25. What is the size of producer surplus when there is no government price control? 26. What is the size of social surplus when there is no government price control? What is the size of deadweight loss when there is no government price control? 27. What is the size of consumer surplus when Price Floor of $9 is imposed? Price of beer

The graph below shows the supply and demand curves for beer. 12+ 11 10 Demand 9P FlooT 8 7+ 6- 4. 3. 27 Supply 10 20 30 40 50 60 70 80 90 100 110 12 Quantity of beer 24. What is the size of consumer surplus when there is no government price control? 25. What is the size of producer surplus when there is no government price control? 26. What is the size of social surplus when there is no government price control? What is the size of deadweight loss when there is no government price control? 27. What is the size of consumer surplus when Price Floor of $9 is imposed? Price of beer

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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11. Imagine that you lease an apartment for $900 a month. The market price for that apartment has increased, but you will pay less than equilibrium price because you have seven months remaining on your lease. What is this phenomenon called? A. consumer surplus B. sticky prices C. producer surplus D. deadweight losses
16 4 points 01:17:49 eBook Print References Mc Graw Hill The figure below shows the demand curve for a U.S. farmer for irrigating his land. It costs $100 per acre to irrigate the land. Each acre of land irrigation generates salty runoff that winds up in the Colorado River. It costs $50 to desalinate this river water so Mexican farmers can irrigate their crops. O Price $275 $250 $225 $200 $175 $150 $125 $100 $75 $50 $25 0 10 70 80 Irrigation (acres) 20 30 80 50 60 90 D=MB =MB pvt 100 110 120
1. Demand for G: P= 50 – 6Q Demand for E: P= 83 - 4Q Cost for G. Input Price = $4 QG MCG 1 a. 2 3 14 4 Find the Equation for MCG. Show Work. Graph the Equilibrium Supply and Demand for G. b. C. Label Axes and the Equilibrium Point What is Producer Surplus? What is Consumer Surplus? d. e. |||
8. Total economic surplus The following graph plots the supply and demand curves in the market for polaroid cameras. Use the black point (plus symbol) to indicate the equilibrium price and quantity of polaroid cameras. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. (?) PRICE (Dollars per camera) 250 225 200 175 150 125 100 75 50 25 0 0 Demand Supply 30 60 90 120 150 180 210 240 QUANTITY (Millions of cameras) Total surplus in this market is $ 270 300 million. + Equilibrium A Consumer Surplus Producer Surplus
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…
CON101 section(2,3 &5)Dr. Abdulhadi Ibrahim / Bonus Quiz (Section 5) 8am Market failure can be caused by of Select one: tion O a. government intervention and price controls O b. externalities and market power O c. high prices and foreign competition O d. low consumer demand
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).…
K The graph shows the market for college education. To encourage the efficient number of students to enroll colleges receive a subsidy Draw the new supply curve following introduction of the subsidy. Label it A subsidy is a payment that to cover part of the costs of education. OA. colleges make to students OB B. students make to the colleges OC. the government makes to colleges OD. students make to the teachers 60 50- 40- 30- 20 10- 0 of 0 Price and cost (thousands of dollars per student per ye Q SMC MSB D-MB 2 4 6 8 10 Quantity (thousands of students per year) >>> Draw only the objects specified in the question 12
PRICE 300 O a. 250 O b. O c. O d. 200 150 100 50 Select one: 25 50 in S 75 QUANTITY D Refer to Figure 7-5.If the demand curve is D and the supply curve shifts from S' to S, what is the change in producer surplus in equilibrium? S D' 100 125 150 Producer surplus increases by $1,875. Producer surplus increases by $625. Producer surplus decreases by $1,875. Producer surplus decreases by $625.
The following table shows Margaret's and Dennis's willingness to pay for cookies. Quantity of Cookies 1 Margaret will buy Dennis will buy 2 4 5 Margaret cookies and her surplus is cookies and his surplus is [ $7 $13 $18 $21 Suppose that the price of cookies is $4.50. How many cookies will Margaret and Dennis buy? Calculate their consumer surplus. $23 Dennis $15 $25 $34 $42 $45
In a market, what determines the value of the total surplus? Question 22Answer a. the total value to buyers less the total costs to sellers b. consumers' willingness to pay plus producer costs c. producer surplus plus consumer surplus d. the total costs to sellers less the total value to buyers