Use the figure below to answer the following questions. Price (dollars per unit) 10 8 9 प 2 0 2 6 8 10 Quantity (units) Figure 5.2.1 Consider Figure 5.2.1. When the price is $4 a unit, what is the consumer surplus from the second unit of the good? Select one: O A. $4 O B. $10 O C. $7 O D. $3

Use the figure below to answer the following questions. Price (dollars per unit) 10 8 9 प 2 0 2 6 8 10 Quantity (units) Figure 5.2.1 Consider Figure 5.2.1. When the price is $4 a unit, what is the consumer surplus from the second unit of the good? Select one: O A. $4 O B. $10 O C. $7 O D. $3

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Quèstion 5 In a market economy, O demand determines supply and supply, in turn, determines prices supply determines demand and demand, in turn, determines prices supply and demand determine prices and prices, in turn, allocate the economy's scarce resources O the allocation of scarce resources determines prices and prices, in turn, determine supply and demand
Use the figure below to answer the following questions. Price (dollars per unit) 10 Select one: O A. $4 O B. $10 O C. $7 O D. $3 O E. $1 8 6 4 2 0 2 4 6 Figure 5.2.1 O 8 10 Quantity (units) Consider Figure 5.2.1. When the price is $4 a unit, what is the consumer surplus from the second unit of the good?
Suppose the daily demand curve for gasoline is as provided in the accompanying graph. a. Calculate the consumer surplus in the market for gasoline if the market price is $3.50. Consumer surplus = $ ___________ million Now suppose the price decreases to $2.50 per gallon. Move the price line on the graph to reflect this change, then calculate the new consumer surplus. New consumer surplus = $________million
Suppose that a $20 subsidy is implemented into the market depicted below. Answer the questions that follow. price 100 80 60 40 20 20 40 60 80 100 What is the price that consumers pay after the subsidy is implemented? a. 80 O b. 50 c. 40 d. 60 Supply Demand 120 140 quantity
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2. Individual and market demand Suppose that Sean and Yvette are the only consumers of shoes in a particular market. The following table shows their annual demand schedules: Price (Dollars per pair) 10 20 30 40 50 PRICE (Dollars per pair) On the following graph, plot Sean's demand for shoes using the green points (triangle symbol). Next, plot Yvette's demand for shoes using the purple points (diamond symbol). Finally, plot the market demand for shoes using the blue points (circle symbol). (?) 60 50 30 20 10 0 0 16 Sean's Quantity Demanded Yvette's Quantity Demanded (Pairs) (Pairs) 32 64 20 48 12 32 4 24 0 16 32 48 64 QUANTITY (Pairs) 80 96 Sean's Demand Yvette's Demand O Market Demand Now, suppose that Yvette's twin brother, who likes shoes just as much a Yvette, moves to the area, adding another consumer in the market. As a result, there will be a ▼ the market demand curve because there will be a change in quantity demanded
Use the following graph to answer the following question: Price ($) 40 25 15 8. 5n Quantity 15 25 50 75 100 200 Refer to the graph above. Suppose that the government imposes a price floor at $15. As a result, the market will experience OAsurplus of 50 units OA surplus of 25 units O No surplus or shortage O A shortage of 50 units
3. Individual and market demand Suppose that Hubert and Kate are the only consumers of pizza slices in a particular market. The following table shows their weekly demand schedules: Price (Dollars per slice) 1 2 3 4 5 Hubert's Quantity Demanded (Slices) 8 5 3 1 0 Kate's Quantity Demanded (Slices) 16 12 8 4 2 On the following graph, plot Hubert's demand for pizza slices using the green points (triangle symbol). Next, plot Kate's demand for pizza slices using the purple points (diamond symbol). Finally, plot the market demand for pizza slices using the blue points (circle symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right.
Time left 0:36:13 The table below shows the willingness to pay for a good for four consumers in a market Consumer Willingness to Pay $80 of $65 C $45 D. $30 If the price of the good is $50, what is the total consumer surplus? Select one: a. $25 b. $45 C. $20 d. $65 Next page vious page OCT tv 田 1,532 23
3. Suppose that the free market equilibrium price of bourbon is $5.00 a bottle, and that the government sets a price floor of $6.00 a bottle on bourbon. The most likely result of this action is that: a. b. C. d. there will now be an excess supply of bourbon the market price of bourbon will remain at $5.00 a bottle. the demand curve for bourbon will shift outward. there will now be an excess demand for bourbon.
3. Consumer surplus for a group of consumers The following graph plots the demand curve (blue line) for several consumers in the market for motor scooters in Meade, a small town located in Kansas. The Meade market price of a motor scooter is given by the horizontal black line at $80. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Dmitri, green (triangle symbols) for Frances, purple (diamond symbols) for Jake, tan (dash symbols) for Latasha, and blue (circle symbols) for Nick. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a motor scooter at a market price of $80. (Note: If a person will not purchase a motor scooter at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) PRICE (Dollars per motor scooter) 160 140 120 Dmitri Frances Jake 100 80 60 40 20 Dmitri Frances Market Price…
. Individual and market demand Suppose that Eric and Ginny are the only consumers of pizza slices in a particular market. The following table shows their weekly demand schedules: Price Eric’s Quantity Demanded Ginny’s Quantity Demanded (Dollars per slice) (Slices) (Slices) 1 6 16 2 3 12 3 2 8 4 1 6 5 0 4 On the following graph, plot Eric’s demand for pizza slices using the green points (triangle symbol). Next, plot Ginny’s demand for pizza slices using the purple points (diamond symbol). Finally, plot the market demand for pizza slices using the blue points (circle symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. ( the graph has attached as an image)