D. Prouucer surpiuS Tor a group o sellersThe following graph shows the supply curve for a group of sellers in the U.S. market for laptops (orange line). Each seller has only one laptop to sell.The market price of a laptop is shown by the black horizontal line at $90.Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Andrew, green (triangle symbols) for Beth,purple (diamond symbols) for Darnell, tan (dash symbols) for Eleanor, and orange (square symbols) for Jacques. (Note: The name labels are to theright of the corresponding segment on the supply curve.)Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a laptop at a market price of $90. (Note: Ifa person will not sell a laptop at the market price, indicate this by leaving his or her rectangle in its original position on the palette.)160140Andrew120JacquesEleanor100BethMarket Price80DarnellDarnell6040BethEleanor20AndrewJacquesQUANTITY (Laptops)Based on the information on the preceding graph, you can tell thatwill sell laptops at the given market price, and total producersurplus in this market will be sPRICE (Dollars per laptop) Suppose the market price of a laptop decreases$50.On the following graph, use the rectangles once again to shade the areas representing producer surplus for each person who is willing to sell a laptopat the new market price: blue (circle symbols) for Andrew, green (triangle symbols) for Beth, purple (diamond symbols) for Darnell, tan (dashsymbols) for Eleanor, and orange (square symbols) for Jacques. (Note: If a person will not sell a laptop at the new market price, indicate this byleaving his or her rectangle in its original position on the palette.)160140AndrewJacques120Eleanor100BethDarnellDarnell60Market Price40BethEleanor20AndrewJacquesQUANTITY (Laptops)Based on the information in the second graph, when the market price of a laptop decreases to $50, the number of sellers willing to sell a laptopto, and total producer surplusto SPRICE (Dollars per laptop)

Producer surplus is the difference between the actual price received by the producer and the minimum…

Answered: The The following graph shows the…

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 that Felix and Janet represent the only two consumers of jeans in some hypothetical market. The following table presents their annual demand schedules for jeans: Price (Dollars per pair) 10 20 60 50 On the following graph, plot Felix's demand for jeans using the green points (triangle symbol). Next, plot Janet's demand for jeans using the purple points (diamond symbol). Finally, plot the market demand for jeans using the blue points (circle symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. PRICE (Dolars per pair) 8 40 20 10 D 30 40 50 0 16 Felix's Quantity Demanded Janet's Quantity Demanded (Pairs) (Pairs) 32 48 20 32 12 24 4 16 8 32 0 48 64 QUANTITY (Pairs) 80 96 4 Felix's Demand > Janet's Demand Market Demand
Q63 Cresco Labs is the largest cannabis producer in the U.S.A. Let's assume the Cresco Labs finds that total revenue decreased when price of marijuana was lowered from $5 to $4 per ounce. It was also found that total revenue decreased when price was raised from $5 to $6 per ounce. Thus, we can conclude that: Multiple Choice $5 is not the equilibrium price of marijuana. the demand for marijuana is inelastic above $5 and elastic below $5. the demand for marijuana is elastic both above and below $5. the demand for marijuana is elastic above $5 and inelastic below $5. it is clear that diminishing marginal utility for the consumption of marijuana has set in.
Suppose that the market for porcelain lupines in Freedonia is perfectly competitive and initially in a long nun equilibrium. Porcelain lupines are normal goods in Freedonia and are produced with a computer aided technology. Porcelain lupines and ceramic roses are substitutes while porcelain lupines and glass vases are complements. Suppose that a government report shows that people who possess ceramic roses are 72.74% more likely to suffer from erectile dysfunction. Describe with the use of diagrams the effects of this report upon the market for porcelain lupines in the short run and in the long run.
Imagine that you run the toll authority for a city bridge. You must charge all of your customers the exact same toll. Initially, you have set the price at $2 per trip. The following graph shows the daily demand curve for trips across the city bridge. On the following graph, use the purple rectangle (diamond symbols) to shade the area representing the total daily expenditure when the toll is $2 on the graph. Note: Select and drag the rectangles from the palette to the graph. To resize, select one of the points on the rectangle and move to the desired position. Once drawn, select inside the rectangle to see its area. TOLL (Dollars per vehicle) 10 9 8 2 1 0 Demand 01 2 3 4 5 6 7 8 9 QUANTITY (Thousands of vehicles per day) 10 When the toll is $2, total expenditure is $ An advisor has suggested that if you raise the toll to $3, total expenditure on tolls will rise. Total Expenditure at $2 per da Total Expenditure at $3 On the previous graph, use the green rectangle (triangle symbols) to…
The following graph displays four demand curves (LL, MM, NN, and 00) that intersect at point A. 200 180 N. 160 M 140 E 120 t. 100 80 60 40 N. 20 20 40 60 80 100 120 140 160 180 200 QUANTITY (Units) A + PRICE (Dollars per unit)
When the price of a certain product was considered to be "low", consumers spent $5 million monthly on it. After the price doubled, the total consumer expenditures increased to $7 million. Recently you read that this means that the demand curve for this product is upward sloping. Do you agree? Explain.
The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. # 345470 10 QUANTITY (Unita) *** TO QUANTITY (Number of units) Graph Input Tool Market for Goods Quantity Demanded (Lv) Demand Price (Dollars per unit) On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 2, 4, 5, 6, 8, and 10 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbo) to plot the results. Total Revenue QUANTITY() Ⓒ 50.00 Calculate the total revenue if the firm produces 2 versus 1 units. Then, calculate the marginal revenue of…
Sven makes rocking chairs for a cost of $75 each, and he sells the rocking chairs for a market price of $130 each. Deidre is willing to pay $200 for a rocking chair. However, the government believes that rocking chair manufacturers should receive more money, and set the lowest legal price rocking chairs can be sold for at $250. At the market price, Sven is willing to sell a rocking chair to Deidre, and Deidre is willing to buy a rocking chair from Sven. Unfortunately, with the new legal minimum, Sven and Deidre cannot trade with one another, and miss out on additional gains from trade. Which of the effects of a price control best fits the scenario above? A)Deadweight Loss B) Reduction in Quality C) misallocation of resources D)wasteful increase in Quanity
Suppose that Paolo and Sharon are the only consumers of ice cream cones in a particular market. The following table shows their monthly demand schedules: Price Paolo’s Quantity Demanded Sharon’s Quantity Demanded (Dollars per cone) (Cones) (Cones) 1 8 16 2 5 12 3 3 8 4 1 6 5 0 4 On the following graph, plot Paolo’s demand for ice cream cones using the green points (triangle symbol). Next, plot Sharon’s demand for ice cream cones using the purple points (diamond symbol). Finally, plot the market demand for ice cream cones using the blue points (circle symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right.
#51
In 1998, five companies were found guilty because of their actions to raise the price of an animal feed additive, lysine, by limiting its supply. Explain why they would engage such a practice with the use of a graph. Assume that the demand for lysine is inelastic in the short term.

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