MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Chapter 3.A, Problem 12SQ
To determine
The
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Total surplus in the market $...........
Explain the Consumer Surplus and Producer Surplus concept. Why this surplus concept is important in the market analysis? How price changes create inequilibrium in the market?
When an economist refers to "an efficient allocation of resources," she typically means
is maximized.
Select one:
a. consumer surplus, but not producer surplus
b. producer surplus, but not consumer surplus
C. the sum of consumer and producer surplus
d. consumer surplus minus producer surplus
Chapter 3 Solutions
MACROECONOMICS FOR TODAY
Ch. 3.7 - Prob. 1YTECh. 3.7 - Prob. 1GECh. 3.7 - Prob. 2GECh. 3.7 - Prob. 3GECh. 3.A - Prob. 1SQPCh. 3.A - Prob. 2SQPCh. 3.A - Prob. 3SQPCh. 3.A - Prob. 4SQPCh. 3.A - Prob. 1SQCh. 3.A - Prob. 2SQ
Ch. 3.A - Prob. 3SQCh. 3.A - Prob. 4SQCh. 3.A - Prob. 5SQCh. 3.A - Prob. 6SQCh. 3.A - Prob. 7SQCh. 3.A - Prob. 8SQCh. 3.A - Prob. 9SQCh. 3.A - Prob. 10SQCh. 3.A - Prob. 11SQCh. 3.A - Prob. 12SQCh. 3.A - Prob. 13SQCh. 3.A - Prob. 14SQCh. 3.A - Prob. 15SQCh. 3.A - Prob. 16SQCh. 3.A - Prob. 17SQCh. 3.A - Prob. 18SQCh. 3.A - Prob. 19SQCh. 3.A - Prob. 20SQCh. 3 - Prob. 1SQPCh. 3 - Prob. 2SQPCh. 3 - Prob. 3SQPCh. 3 - Prob. 4SQPCh. 3 - Prob. 5SQPCh. 3 - Prob. 6SQPCh. 3 - Prob. 7SQPCh. 3 - Prob. 8SQPCh. 3 - Prob. 9SQPCh. 3 - Prob. 10SQPCh. 3 - Prob. 11SQPCh. 3 - Prob. 12SQPCh. 3 - Prob. 1SQCh. 3 - Which of the following would not cause market...Ch. 3 - Prob. 3SQCh. 3 - Prob. 4SQCh. 3 - Prob. 5SQCh. 3 - Prob. 6SQCh. 3 - Prob. 7SQCh. 3 - Prob. 8SQCh. 3 - Prob. 9SQCh. 3 - Prob. 10SQCh. 3 - Prob. 11SQCh. 3 - Prob. 12SQCh. 3 - Prob. 13SQCh. 3 - Prob. 14SQCh. 3 - Prob. 15SQCh. 3 - Prob. 16SQCh. 3 - Prob. 17SQCh. 3 - Prob. 18SQCh. 3 - Prob. 19SQCh. 3 - Prob. 20SQCh. 3 - Prob. 21SQCh. 3 - Prob. 22SQCh. 3 - Prob. 23SQCh. 3 - Prob. 24SQCh. 3 - Prob. 25SQ
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- Why does producer surplus arise? Consumers buy less of some commodities than they need. Sellers' costs of production for some goods are less than the market price. Producers make more off some commodities than the consumers desire. Sellers manufacture more units of a good than consumers are willing to purchase.arrow_forwardIf the deadweight loss in the market represented by the graph is $1,400, what is the actual economic surplus?arrow_forwardFor each scenario, decide whether it results in a producer or consumer surplus. Then calculate the resulting surplus. Alice is willing to spend $30$30 on a pair of jeans and has a coupon for $10$10 off. She purchases a pair of jeans that costs $35$35 pre-discount. Alice receives a Alice's surplus: $ Jeff finds steak in the supermarket priced at$16$16 but that he would have been willing to pay $20$20 for. The butcher notices the meat is near the expiration date and gives him an extra 7575% off. Jeff receives a producer surplus. consumer surplus. Jeff's surplus: $ Nicole has a hockey puck from the 2018 Winter Olympic Games and puts it up for sale on eBay. She will only sell the puck if the winning bid is greater than or equal to $500$500. After the bidding closes, the last bid stands at $501$501. Nicole receives a Nicole's surplus: $arrow_forward
- © Macmillan Learning b. How much does this new technology increase consumer surplus? Increase in consumer surplus: $ 1050 Increase in producer surplus: $ Incorrect c. How much does this new technology increase producer surplus? 1050 Incorrect d. How much does this new technology increase total (or social) surplus?arrow_forwardA. The demand curve for a product is D = -2p + 800 , where the demand is units , and p is the price in $ . When the price is $ 100 , calculate the consumer surplus . Also , show a graph that indicates the consumer surplus . B. The supply curve for a product is S = 5p - 400 , where the supply is 5 units , and p is the price in $ . When the price is $ 200 , calculate the producer surplus . Also , show a graph that indicates the producer surplusarrow_forwardIn a supply-and-demand graph, producer surplus can be pictured as the Select one: a. vertical intercept of the supply curve. b. area between the demand curve and the supply curve to the left of equilibrium output. c. area under the supply curve to the left of equilibrium output. d. area under the demand curve to the left of equilibrium output. e. area between the equilibrium price line and the supply curve to the left of equilibrium output.arrow_forward
- Define consumer and producer surplus and give a geometric interpretation of each.arrow_forwardA “Spider-man" DVD is worth $30 to Marcus. But he buys one on sale for just $15. What is the consumer surplus that results from Marcus's purchase? $10 $25 $15 Incorrect cannot be determined from the information given Incorrect. $40arrow_forwardI think the answer for the following question is $60 because of 200-140 but I am not entirely sure. Marco goes to the pet store to buy a dozen Koi fish for his new Koi pond. He is willing to pay $200 for the dozen fish, but buys them for a total of $140. Marco's consumer surplus from the purchase is A) $5. B) $60. C) $140. D) $200.arrow_forward
- In the market for pizza, both consumer surplus and producer surplus will increase when the price of a pizza increases from $3 to $6. O True Falsearrow_forward___________ surplus is the difference between the maximum price a consumer is (or consumers are) willing to pay for a product and the actual [market] price. Producer Consumerarrow_forwardWhich of the following would lead to the creation of some consumer surplus? Sam refuses to pay $10 for a haircut because it is only worth $8 to him. Fred buys a car for $4000, the maximum amount that he is willing to pay. Danette pays $30 a month for phone service, but it is worth $70 a month to her. When Florence purchases a candy bar for 50 cents, she uses a $20 bill to pay for it.arrow_forward
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