Which best describes producer surplus? O a. The profits made by a firm O b. The difference between the willingness to sell for an item and the price he/she will receive for the good it sells O c. The price producers would like to receive to accept to sell a unit of the good O d. The cost of providing a unit We can measure total consumer surplus for good X as: O a. the area bounded by the demand curve for X and the two axes. O b. the area above the demand curve for X and below the price of X. O c. the sum of the individual consumer surpluses for all buyers of X O d. the area above the supply curve for X.

Which best describes producer surplus? O a. The profits made by a firm O b. The difference between the willingness to sell for an item and the price he/she will receive for the good it sells O c. The price producers would like to receive to accept to sell a unit of the good O d. The cost of providing a unit We can measure total consumer surplus for good X as: O a. the area bounded by the demand curve for X and the two axes. O b. the area above the demand curve for X and below the price of X. O c. the sum of the individual consumer surpluses for all buyers of X O d. the area above the supply curve for X.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Figure 7-4 Price P₂ P₁ o с D 9₂ B E 82 Quantity Refer to Figure 7-4. What will NOT occur when the price falls from P2 to P1? a. The total quantity sold in the market increases. b. The sellers who still sell the good are worse off because they now receive less. OC. The total cost of what is now sold by sellers is actually higher. X d. Producer surplus would fall by area A + B.
The opportunity cost of a hotdog in terms of hamburgers is O the ratio of the price of a hotdog to the price of a hamburger. O the price of a hot dog minus the price of a hamburger. O the ratio of the slope of the demand curve for hot dogs to the slope of the demand curve for hamburgers. the ratio of the slope of the supply curve for hot dogs to the slope of the supply curve for hamburgers.
How would a decrease in the cost of production affect the market for new washing machines? O Supply would decrease, leading to a reduction in price and a reduction in quantity sold. O Supply would increase, leading to a reduction in price and an increase in quantity sold. Supply would decrease, leading to an increase in price and a reduction in quantity sold. Supply would increase, leading to an increase in price and an increase in quantity sold.
Currently the price for wheat is $5 per bushel. To help the farmers, the government promises that it will buy any wheat that farmers can't sell at a price of $6 per bushel. Select one. O a This will decrease producer surplus. O b This is an example of quota. O c This will decrease consumer surplus. O d This is an example of price ceiling
he quantity demanded each month of Russo Espresso Makers is 250 when the unit price is $136. The quantity demanded ach month is 1000 when the unit price is $106. The suppliers will market 750 espresso makers when the unit price is $80 er higher. At a unit price of $100, they are willing to market 2250 units. Both the supply and demand equations are known o be linear. (a) Find the demand equation. -1 -x + 146 25 p = (b) Find the supply equation. 1 x+ 70 p = 75* (c) Find the equilibrium quantity and the equilibrium price. |× units
O The demand curve for a product is given by Qp = 400-20P and the supply curve for a product is given by Qs = 16P-32. O a. Illustrate the demand curve and the supply curve on the same graph. O b. Find the equilibrium price and quantity. O c. Find numerical values for the consumer surplus and the producer surplus. O d. Identify consumer surplus and producer surplus on your graph.
The equations describing demand and supply curves for pizzasare given as follows:Q= 500 –P and Q= 2P + 200. a.What is the equilibriumpriceand quantity? b.Suppose that the price levelis set by the government at $150. Will there be a shortage or surplus? Explain why . What is the size of the surplus or shortage ?
Anna Brian Clem Dave Refer to Table 12-1. Assume that the price of a weekend ski pass is $45 and that the price reflects the actual unit cost of providing a weekend of skiing. How much consumer surplus accrues to Anna and Clem individually? D O a. $85 and $40 respectively O b. $105 and $30 respectively O c. $125 and $20 respectively O d. $65 and $50 respectively X $ 4 F4 R с JE V *F5 % 5 T F6 6 > Table 12-1 Person Value of a Weekend Ski Trip (Dollars) F7 G H & E 7 F8 * 8 8 F9 150 90 75 50 B N M ( 9 U U K F10 O ☀- 0 F11 ☀+ F12 11 PrtSc [ + 11 Insert
Suppose that the government decided to subsidize bacon producers. Will this impact supply or demand? O This will impact both supply and demand causing the supply curve and demand curve to shift to the left. This will only impact supply, causing the supply curve to shift to the left. This will only impact supply, causing the supply curve to shift to the right. This will impact both supply and demand causing the supply curve and demand curve to shift to the right.
According to the graph shown, if price in this market is currently $14, there would be a Price $20 18 16 14 12 10 8. 6. 4 10 20 30 40 50 60 70 80 90 100 Quantity Select one: O a. shortage of 20 units O b. surplus of 20 units Oc shortage of 40 units d. surplus of 40 units
A decrease in the supply of a product most likely would be caused by O An increase in business taxes O A decrease in resource costs for production O A decrease in the price of a complementary good O None of the above
The table shows the demand and supply schedules for tacos. If the quantity demanded of tacos decreases by 120 per hour at each price, the new price of a taco is s Total surplus JC C 3 e d с by S $ f % 5 t g CMD V b 6 M Oll y h & 7 n O u * 8 Price (dollars per taco) 0 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 m ( 9 k Quantity demanded 240 210 180 150 120 90 60 30 0 O (tacos per hour) O Quantity supplied alt 0 30 60 90 120 150 180 210 240 Next р mpts Oc 0 of O ? 1