Use the following questions to guide your understanding on consumer and producer surplus. If also you need additional help, you may refer to the following video https://www.youtube.com/watch?v3n0LXkA9kato to help you answer the questions below. Part 1: The Consumer (Imagine that you are the consumer) Based on Figure 1: i) What is the highest price a consumer is willing to pay for a bar of Cadbury chocolates? $4 ii) How much does the consumer end up paying for a bar of Cadbury chocolates? i.e. what is the market price of a bar of chocolate? $ iii) Thus, does a consumer end up paying more or less? Hence, the difference between what a consumer is willing to pay for a chocolate bar relative to its market price is known as In the above figure, this is represented as Area A or Area B? Part 2: The Producer (now imagine you are a producer)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Supply line:
Relationship between the price of a good and the quantity of the good that a seller is
willing and able to supply at any given price.
Price of a
Figure 1
Chocolate Bar, $
Supply
Area A
Area B
Demand
Quantity of Chocolate Bars
2021 RPISMC/DBIZ/Sem2IAPS
Page 1
ngapore)
O Accessibility: Unavailable
D, Focus
30°C
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Transcribed Image Text:O Search (Alt +Q) Es work - Compatibility Mode Saved to this PC - Review View Help at References Mailings v 11 x Po Editing Dictate Sensitivity Editor Reuse Styles Files A A A 田。公。 E Styles Voice Sensitivity Editor Reuse Fil- Paragraph Enable Content Supply line: Relationship between the price of a good and the quantity of the good that a seller is willing and able to supply at any given price. Price of a Figure 1 Chocolate Bar, $ Supply Area A Area B Demand Quantity of Chocolate Bars 2021 RPISMC/DBIZ/Sem2IAPS Page 1 ngapore) O Accessibility: Unavailable D, Focus 30°C acer
EHDPS dsplay
9 Search (Alt+Q)
TANG
vork - C. -
References
Mailings
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=、而、行。EE
三==目 前。
田、公。 T
11
Styles
Editing
Dictate
Sensitivity
Editor
Re
Fil
A A A
Paragraph
E Styles
Voice
Sensitivity
Editor
Reuse
Enable Content
Use the following questions to guide your understanding on consumer and producer surplus. If
also
you
need
additional
help,
you
may
refer
to
the
following
video
https://www.youtube.com/watch?v=n0LXkA9kato to help you answer the questions below.
Part 1: The Consumer (Imagine that you are the consumer)
Based on Figure 1:
i) What is the highest price a consumer is willing to pay for a bar of Cadbury chocolates?
$4
ii) How much does the consumer end up paying for a bar of Cadbury chocolates? ie.
what is the market price of a bar of chocolate? $
iii) Thus, does a consumer end up paying more or less?
Hence, the difference between what a consumer is willing to pay for a chocolate bar
relative to its market price is known as
In the above figure, this is represented as Area A or Area B?
Part 2: The Producer (now imagine you are a producer)
Rased on Figure 1-
K Accessibility: Unavailable
D Focus
30
acer
Transcribed Image Text:EHDPS dsplay 9 Search (Alt+Q) TANG vork - C. - References Mailings Review View Help =、而、行。EE 三==目 前。 田、公。 T 11 Styles Editing Dictate Sensitivity Editor Re Fil A A A Paragraph E Styles Voice Sensitivity Editor Reuse Enable Content Use the following questions to guide your understanding on consumer and producer surplus. If also you need additional help, you may refer to the following video https://www.youtube.com/watch?v=n0LXkA9kato to help you answer the questions below. Part 1: The Consumer (Imagine that you are the consumer) Based on Figure 1: i) What is the highest price a consumer is willing to pay for a bar of Cadbury chocolates? $4 ii) How much does the consumer end up paying for a bar of Cadbury chocolates? ie. what is the market price of a bar of chocolate? $ iii) Thus, does a consumer end up paying more or less? Hence, the difference between what a consumer is willing to pay for a chocolate bar relative to its market price is known as In the above figure, this is represented as Area A or Area B? Part 2: The Producer (now imagine you are a producer) Rased on Figure 1- K Accessibility: Unavailable D Focus 30 acer
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