You and your best friend want to hire a professional photographer to take pictures of your two families. The costs of the four potential sellers in the local photography market are: Lebron $700; Kobe $600; Kevin $450 and Steve $400. You and your friend agree to offer $500 for each session. Who accepts the offer, and what is the total producer surplus in the market? Select one: O a. Kevin and Steve; $150 O b. LeBron and Kobe; $500 O c. LeBron and Kobe; $300 O d. Kevin and Steve; $500

You and your best friend want to hire a professional photographer to take pictures of your two families. The costs of the four potential sellers in the local photography market are: Lebron $700; Kobe $600; Kevin $450 and Steve $400. You and your friend agree to offer $500 for each session. Who accepts the offer, and what is the total producer surplus in the market? Select one: O a. Kevin and Steve; $150 O b. LeBron and Kobe; $500 O c. LeBron and Kobe; $300 O d. Kevin and Steve; $500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

O The accompanying diagram represents the market for violins. Suppose that a new technology allows beginner-level violin producers to make violins at a substantially lower marginal cost while retaining the same quality. This causes the market supply curve to increase from $1 to $2. a. Place the area labeled CS to represent the new consumer surplus in the market and the area labeld PS to represent the new producer surplus in the market. 300 270 2404 210 180 150 120 90 Incorrect. 60 30 0 0 10 Market for violins 20 30 40 50 60 70 Quantity of violins (in thousands) Increase in consumer surplus: S Increase in producer surplus: $ Incorrect SI b. How much does this new technology increase consumer surplus? Increase in total surplus: $ c. How much does this new technology increase producer surplus? Incorrect S2 D 80 90 100 Incorrect CS PS d. How much does this new technology increase total (or social) surplus? /items/c33159e3-e40a-4... Q
40
Help
At a used appliance store, Kathy purchases a used stove for $155 when she was willing to pay $185. If the stove costs $375 new, Kathy's consumer surplus is OA. $195 OB. $375 OC. $220 OD. $180, OE $30
This question is inspired on the recent evolution of electricity markets in Switzerland and the EU.Suppose a market consists of three producers:i. Firm 1 (photovoltaics) has a marginal cost of production od CHF 1 and can produce up to 100 MW/h;ii. Firm 2 (hydroelectric) has a marginal cost od production of CHF 5 and can produce up to 200 MW/H;iii. Firm 3 (gas) has a marginal cost od production of CHF 20 and can produce up to 200 MW/h.For simplicity, assume that there are no fixed costs of production.Consumers are willing to pay a constant amount of 25 CHF for each additional MW/h up to 500 MW/h. a) Draw a graph of supply and demand for this market.b) Calculate the price in the market and the profits of each company.
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.
8. Consumer and Producer Surplus Suppose Charles is the only seller in the market for bottled water and Yakov is the only buyer. The following lists show the value Yakov places on a bottle of water and the cost Charles incurs to produce each bottle of water: Yakov's Value Value of first bottle: $7 Value of second bottle: $5 Value of third bottle: $3 Value of fourth bottle: $1 Charles's Costs Cost of first bottle: $1 Cost of second bottle: $3 Cost of third bottle: $5 Cost of fourth bottle: $7 The following table shows their respective supply and demand schedules: Price Quantity Demanded Quantity Supplied $1 or less 4 о $1 to $3 3 1 $3 to $5 2 2 $5 to $7 1 3 More than $7 0 4 Use Charles's supply schedule and Yakov's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $4, and $6. Enter these values in the following table. Price Quantity Demanded Quantity Supplied 2 4 A price of brings supply and demand into equilibrium. At the equilibrium price, consumer…
Dollars per unit $20- S $15 e $10 $6 $2 2,000 1,000 1,200 Quantity per period Use the graph above. If the price in the market is $10, what is the consumer surplus in the market? O None of the answers is correct O $40,000 O2,000 units O $10,000 Consumer surplus Producer surplus
Price of cheese $/16 $20 $10 $20 O 15 S Quantity of cheese (lbs) Refer to the diagram above. The total producer surplus in the market for cheese is $_____ Please input only the numerical value without the $ sign. If your answer is $20, please input 20 for your answer.
Gas-powered hedge trimmers Price (P) S D Quantity (Q) The cost of labor rises in this industry. At the same time consumer tastes shift away from this product in favor of quieter or less-polluting alternatives. What is likely to happen in this market? Select one: O a. Price may rise or fall; Quantity will fall. O b. Price may rise or fall; Quantity will rise. O c. Price will rise; Quantity may rise or fall. O d. Price will fall; Quantity may rise or fall. Clear my choice Check