Using the image presented on the worksheet, the total surplus is $_____. Do not forget to round to two decimal places, input the decimal point and two places to the right of the decimal point, and place a comma, if needed.
Using the image presented on the worksheet, the total surplus is $_____. Do not forget to round to two decimal places, input the decimal point and two places to the right of the decimal point, and place a comma, if needed.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Refer to Question #1: Using the image presented on the worksheet, the total surplus is $_____. Do not forget to round to two decimal places, input the decimal point and two places to the right of the decimal point, and place a comma, if needed.
The graph shows a supply and demand curve. The y-axis is labeled "P," and the x-axis is labeled "Q." The demand curve "D" slopes downward from left to right, and the supply curve "S" slopes upward. The intersection of these curves suggests an equilibrium point.
- Points on the y-axis: 10, 25, 50, 75, 90
- Points on the x-axis: 200, 500, 800
**Questions:**
1. In the space below, calculate CS (Consumer Surplus), PS (Producer Surplus), and TS (Total Surplus), assuming this market is efficient. (Use your Economics Rubric)
2. Using the above image, assume the price of the product climbs to $75.
2a. If the price of $75 on the image above is, instead, a price ______, then it would be nonbinding within the market.
2b. If the price of $75 on the image above is a price ______, then it would be binding within the market.
3. Using the above image, assume the price of the product drops to $25.
3a. If the price of $25 on the image above is a price floor, then it would be _______ within the market.
4. Consider the market for theater movies. The price-intercept for the supply curve is $5. The price-intercept for the demand curve is $30. At equilibrium, this market sells 6,000 tickets at $15 per ticket. My suggestion is to draw this on your own paper, so you can see the illustration of the market dynamics and use it to answer these questions:
4a. Calculate the consumer surplus for theater movies.
4b. Calculate the producer surplus for theater movies.
4c. Calculate the total surplus for theater movies.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60ab4a3c-90a5-4741-b5df-57c75fb94bcc%2F7df30c2c-74f0-4463-b219-92d7968b367a%2Fezgnoca_processed.png&w=3840&q=75)
Transcribed Image Text:**Text Transcription:**
Use this image to answer the following (independent) questions:
The graph shows a supply and demand curve. The y-axis is labeled "P," and the x-axis is labeled "Q." The demand curve "D" slopes downward from left to right, and the supply curve "S" slopes upward. The intersection of these curves suggests an equilibrium point.
- Points on the y-axis: 10, 25, 50, 75, 90
- Points on the x-axis: 200, 500, 800
**Questions:**
1. In the space below, calculate CS (Consumer Surplus), PS (Producer Surplus), and TS (Total Surplus), assuming this market is efficient. (Use your Economics Rubric)
2. Using the above image, assume the price of the product climbs to $75.
2a. If the price of $75 on the image above is, instead, a price ______, then it would be nonbinding within the market.
2b. If the price of $75 on the image above is a price ______, then it would be binding within the market.
3. Using the above image, assume the price of the product drops to $25.
3a. If the price of $25 on the image above is a price floor, then it would be _______ within the market.
4. Consider the market for theater movies. The price-intercept for the supply curve is $5. The price-intercept for the demand curve is $30. At equilibrium, this market sells 6,000 tickets at $15 per ticket. My suggestion is to draw this on your own paper, so you can see the illustration of the market dynamics and use it to answer these questions:
4a. Calculate the consumer surplus for theater movies.
4b. Calculate the producer surplus for theater movies.
4c. Calculate the total surplus for theater movies.
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