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- Question 6 In the graph, consumer surplus is equal to 22 16 D 20 O $6 O $14 O $20 O $60 Question 7 MacBook Air On 2.PRICE (Dollars per pastry) 9.00 8.25 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 1.50 0.75 0 Price Supply 0 2 + 4 6 Kenji's Weekly Supply A 8 10 12 14 16 QUANTITY (Pastries) 18 20 22 24 Using the previous graph, you can determine that Kenji is willing to supply his 6th weekly pastry for $ the producer surplus earned from supplying the 6th pastry is $ Since he receives $2.25 per pastry, Suppose the price of pastries were to rise to $3.00 per pastry. At this higher price, Kenji would receive a producer surplus of $ pastry he sells. from the 6thSuppose the market for exercise bikes experiences the following event: The government reduces subsides on exercise equipment. What will be the effect on the equilibrium? O Equilibrium price increases and equilibrium quantity decreases. O Equilibrium price and quantity increase. O Equilibrium price and quantity decrease. O Equilibrium price decreases and equilibrium quantity increases.
- age Figure 7-2 Price P₁ P₂ B D O a. ACF O b. ABD O C. DEF O d. BCED E Q₂ 8₂ D Quantity Refer to Figure 7-2. Which area represents consumer surplus at a price of P1? me left:52:46 NEXT PAGEWhat is the relationship between supply anddemand when a market is in equilibrium? Explainhow the incentives facing cell phone companiesand consumers cause the market for cell phones toreach equilibrium1. The market demand for automobiles is given by Q 67-1.5P, where Qd is quantity demanded, measured in thousands, and P is price. The market supply for automobiles is given by Qs 3.2 + 1.2 P, where as is quantity supplied, measured in thousands, and P is price. a. Calculate the equilibrium price and quantity in this market Equilibiium Price Equibbrium Quantity eb. Al equilibrium, what is the price elasticity of demand? What is the price elasticity of supply? Price Elasticity of Demand Price Elastioity of Supply
- Consumer Willingness to Pay Anya $24 Basil 20 Celeste 15 Dralon 12 Esther 7 Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one ticket rises from $10 to $19, O only three tickets will be sold. consumer surplus decreases from $31 to $6. no one will buy a ticket. O consumer surplus increases from $44 to $71.The equations describing demand and supply curves for pizzasare given as follows:Q= 500 –P and Q= 2P + 200. a.What is the equilibriumpriceand quantity? b.Suppose that the price levelis set by the government at $150. Will there be a shortage or surplus? Explain why . What is the size of the surplus or shortage ?When a market produces more or less than the optimal amount of a particular good, economists say there is: O Market failure An in-kind transfer payment O A value marginal product O Cross-inefficiency
- QUESTION 11 The number of seats available in an arena is fixed at 20,000. The equilibrium price for a ticket to a basketball game at the arena is $75. The equilibrium price for a ticket to the circus at the arena is $25. Which of the following is true? O The demand for each basketball game must be more than the demand for each circus performance. O Basketball games must be more expensive to produce than a circus performance. O The supply of circus performances must be less elastic than the supply of basketball games. O The demand for each circus performance must be greater than the demand for each basketball game.The table shows the demand and supply schedules for tacos. If the quantity demanded of tacos decreases by 120 per hour at each price, the new price of a taco is s Total surplus JC C 3 e d с by S $ f % 5 t g CMD V b 6 M Oll y h & 7 n O u * 8 Price (dollars per taco) 0 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 m ( 9 k Quantity demanded 240 210 180 150 120 90 60 30 0 O (tacos per hour) O Quantity supplied alt 0 30 60 90 120 150 180 210 240 Next р mpts Oc 0 of O ? 1