There are two consumers, Andy and Ben, in the market for pumpkins. Their willingness topay for each pumpkin is shown in the table Pumpkin Market. There are two producers ofpumpkins, Cindy and Diane, and their costs are also shown. The equilibrium price forpumpkins is $8 and the equilibrium quantity is 5. At the equilibrium price and quantity,Cindy sellspumpkins, and her producer surplus is______Andy'sQuantity of willingness toPumpkins pay1st pumpkin $122ndpumpkin3rd pumpkin 84th pumpkin 6A) four; $210B) three; $81C) two: $D) one; $5Ben's willingness Cindy'sto paycost$11975$30010Diane's cost$411

Willingness to pay refers to the maximum amount of money or value that a consumer is willing to…

Answered: There are two consumers, Andy and Ben,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Alice, Amber, and Andi make and sell pottery. Alice is willing to sell a 5 inch pot for $20, Amber is willing to sell a 5 inch pot for $22, and Andi is willing to sell a 5 inch pot for $46. If each of the ladies is able to sell one 5 inch pot for $50, what is their combined producer surplus? combined producer surplus: $ If the price of a 5 inch pot is $30, which of the ladies will sell their pots? Andi only Alice only Alice, Amber, and Andi Alice and Amber
Suppose Rajiv is the only seller in the market for bottled water and Kevin is the only buyer. The following lists show the value Kevin places on a bottle of water and the cost Rajiv incurs to produce each bottle of water: Kevin's Value Value of first bottle: $10 Value of second bottle: $7 Value of third bottle: $3 Value of fourth bottle: $1 The following table shows their respective supply and demand schedules: Price $1 or less $1 to $3 $3 to $7 $7 to $10 More than $10 Quantity Demanded Quantity Supplied 4 3 2 1 0 0 1 2 3 Cost of first bottle: $1 Cost of second bottle: $3 Cost of third bottle: $7 Cost of fourth bottle: $10 4 Rajiv's Costs Use Rajiv's supply schedule and Kevin's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $6, and $9. Enter these values in the following table.
Consider the market for electric vehicles. The market price of each electric vehicle is $200,000, and each consumer demands no more than one electric vehicle. Suppose that Jake is the only consumer in the electric vehicle market. Their willingness to pay for an electric vehicle is $350,000. Based on Jake's willingness to pay, the following graph shows his demand curve for electric vehicles. Shade the area representing Jake's consumer surplus using the green rectangle (triangle symbols). PRICE (Thousands of dollars) 400 Jake's Demand 350 300 250 200 150 100 50 Market Price 0 0 3 4 5 QUANTITY (Electric vehicles) Jake's Consumer Surplus Now, suppose another buyer, Latasha, enters the market for electric vehicles, and her willingness to pay is $250,000. Based on Latasha's and Jake's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Jake's consumer surplus using the green rectangle (triangle symbols), and…
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D(x) is the price, in dollars per unit, that consumers are willing to pay for x units of an item, and S(x) is the price, in dollars per unit, that producers are willing to accept for x units. S(x)= ex-6.5 -x+ 5.5 D(x)= e a) Find the equilibrium point. b) Find the consumer surplus at the equilibrium point. c) Find the producer surplus at the equilibrium point. a) What are the coordinates of the equilibrium point? (Type an ordered pair Round each coordinate to the nearest hundredth as needed. Do not include the $ symbol in your answer) b) What is the consumer surplus at the equilibrium point? $ (Round to the nearest cent as needed) c) What is the producer surplus at the equilibrium point? $ (Round to the nearest cent as needed)

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