Using a diagram explain the consumer and producer surplus between Boss and fans Concept Introduction: Demand Curve: The curve shows how the quantity demanded changes due to changes in the price . It is a negatively sloped curve. Supply Curve: The curve shows how the quantity supplied changes due to changes in the price. It is a positively sloped curve. Consumer Surplus : It is a difference between the amount that a consumer wants to pay and the real amount which he pays for goods and services. Producer Surplus: It is the difference between the amount that a producer wants to receive and the real amount which he receives for goods and services.

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Answer 1

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 4, Problem 1BCQ

To determine

Using a diagram explain the consumer and producer surplus between Boss and fans

Concept Introduction:

Demand Curve: The curve shows how the quantity demanded changes due to changes in the price. It is a negatively sloped curve.

Supply Curve: The curve shows how the quantity supplied changes due to changes in the price. It is a positively sloped curve.

Consumer Surplus: It is a difference between the amount that a consumer wants to pay and the real amount which he pays for goods and services.

Producer Surplus: It is the difference between the amount that a producer wants to receive and the real amount which he receives for goods and services.

Expert Solution & Answer

Explanation of Solution

Loose-leaf Version for Economics & LaunchPad (Twelve Month Access), Chapter 4, Problem 1BCQ

Fig 1

In the above table, x-axis shows quantity of tickets sold and y-axis shows the price of ticket.

The market price of ticket is $284, however the boss sold it for only $75.

The reduction in the price has led to loss in the producer surplus and gain in the consumer surplus. When price is $284, the quantity sold is Q₁_,but when it decreased to $75, the quantity of ticket sold increased to Q₂.

Lower price has made consumers better off, but there was a loss in producer surplus shown by the shaded area. It was found that the boss lost almost $4 million.

Conclusion:

Thus, there was a loss in producer surplus due to fall in price.

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Respond to B.A. I have chosen Gross Domestic Product (GDP) as the macroeconomic indicator to review and provide a forecast prediction. Based on the current trend I predict a 2% annual GDP growth rate, indicating an unstable economy due to the impact of Donald Trump's tariffs on some countries and other other economic factors. This growth rate is lower than the historical average , indicating a slowdown in economic expansion. Overall, the forecast suggests a modest growth in GDP, but with potential risks and uncertainties ahead. But if he reverse his tariff policies, I think it could possibly result in a strong economic growth. As the removal of tariffs would likely minimize the costs for businesses and consumers and also rise trade and economic activities. Provide feedback/comments this post. You could agreement or disagreement (including why you agree or disagree). Or you could expand on this post by sharing different views and predictions.

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ECON 2106: Microeconomics I Fall - 2023 Algoma University Homework # 2 (Due: October 19, 2023) 1. The market demand for cashmere socks is given by Q = 1,000 + 0.5I – 400P + 200P’ Where, Q = Annual demand in number of pairs I = Average income I dollars per year P = Price of one pair of cashmere shocks P’ = Price of one pair of wool shocks Given that I = ECON 2106: Microeconomics I Fall - 2023 Algoma University Homework # 2 (Due: October 19, 2023) 1. The market demand for cashmere socks is given by Q = 1,000 + 0.5I – 400P + 200P’ Where, Q = Annual demand in number of pairs I = Average income I dollars per year P = Price of one pair of cashmere shocks P’ = Price of one pair of wool shocks Given that I = $20,000, P = $10, and P’ = $5, determine ƐQP, ƐQI, and ƐQP’.

Answer 2

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 4, Problem 1BCQ

To determine

Using a diagram explain the consumer and producer surplus between Boss and fans

Concept Introduction:

Demand Curve: The curve shows how the quantity demanded changes due to changes in the price. It is a negatively sloped curve.

Supply Curve: The curve shows how the quantity supplied changes due to changes in the price. It is a positively sloped curve.

Consumer Surplus: It is a difference between the amount that a consumer wants to pay and the real amount which he pays for goods and services.

Producer Surplus: It is the difference between the amount that a producer wants to receive and the real amount which he receives for goods and services.

Expert Solution & Answer

Explanation of Solution

Loose-leaf Version for Economics & LaunchPad (Twelve Month Access), Chapter 4, Problem 1BCQ

Fig 1

In the above table, x-axis shows quantity of tickets sold and y-axis shows the price of ticket.

The market price of ticket is $284, however the boss sold it for only $75.

The reduction in the price has led to loss in the producer surplus and gain in the consumer surplus. When price is $284, the quantity sold is Q₁_,but when it decreased to $75, the quantity of ticket sold increased to Q₂.

Lower price has made consumers better off, but there was a loss in producer surplus shown by the shaded area. It was found that the boss lost almost $4 million.

Conclusion:

Thus, there was a loss in producer surplus due to fall in price.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 4, Problem 1BCQ

To determine

Using a diagram explain the consumer and producer surplus between Boss and fans

Concept Introduction:

Demand Curve: The curve shows how the quantity demanded changes due to changes in the price. It is a negatively sloped curve.

Supply Curve: The curve shows how the quantity supplied changes due to changes in the price. It is a positively sloped curve.

Consumer Surplus: It is a difference between the amount that a consumer wants to pay and the real amount which he pays for goods and services.

Producer Surplus: It is the difference between the amount that a producer wants to receive and the real amount which he receives for goods and services.

Expert Solution & Answer

Explanation of Solution

Loose-leaf Version for Economics & LaunchPad (Twelve Month Access), Chapter 4, Problem 1BCQ

Fig 1

In the above table, x-axis shows quantity of tickets sold and y-axis shows the price of ticket.

The market price of ticket is $284, however the boss sold it for only $75.

The reduction in the price has led to loss in the producer surplus and gain in the consumer surplus. When price is $284, the quantity sold is Q₁_,but when it decreased to $75, the quantity of ticket sold increased to Q₂.

Lower price has made consumers better off, but there was a loss in producer surplus shown by the shaded area. It was found that the boss lost almost $4 million.

Conclusion:

Thus, there was a loss in producer surplus due to fall in price.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 4, Problem 1BCQ

To determine

Using a diagram explain the consumer and producer surplus between Boss and fans

Concept Introduction:

Demand Curve: The curve shows how the quantity demanded changes due to changes in the price. It is a negatively sloped curve.

Supply Curve: The curve shows how the quantity supplied changes due to changes in the price. It is a positively sloped curve.

Consumer Surplus: It is a difference between the amount that a consumer wants to pay and the real amount which he pays for goods and services.

Producer Surplus: It is the difference between the amount that a producer wants to receive and the real amount which he receives for goods and services.

Expert Solution & Answer

Explanation of Solution

Loose-leaf Version for Economics & LaunchPad (Twelve Month Access), Chapter 4, Problem 1BCQ

Fig 1

In the above table, x-axis shows quantity of tickets sold and y-axis shows the price of ticket.

The market price of ticket is $284, however the boss sold it for only $75.

The reduction in the price has led to loss in the producer surplus and gain in the consumer surplus. When price is $284, the quantity sold is Q₁_,but when it decreased to $75, the quantity of ticket sold increased to Q₂.

Lower price has made consumers better off, but there was a loss in producer surplus shown by the shaded area. It was found that the boss lost almost $4 million.

Conclusion:

Thus, there was a loss in producer surplus due to fall in price.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 4, Problem 1BCQ

To determine

Using a diagram explain the consumer and producer surplus between Boss and fans

Concept Introduction:

Demand Curve: The curve shows how the quantity demanded changes due to changes in the price. It is a negatively sloped curve.

Supply Curve: The curve shows how the quantity supplied changes due to changes in the price. It is a positively sloped curve.

Consumer Surplus: It is a difference between the amount that a consumer wants to pay and the real amount which he pays for goods and services.

Producer Surplus: It is the difference between the amount that a producer wants to receive and the real amount which he receives for goods and services.

Expert Solution & Answer

Explanation of Solution

Loose-leaf Version for Economics & LaunchPad (Twelve Month Access), Chapter 4, Problem 1BCQ

Fig 1

In the above table, x-axis shows quantity of tickets sold and y-axis shows the price of ticket.

The market price of ticket is $284, however the boss sold it for only $75.

The reduction in the price has led to loss in the producer surplus and gain in the consumer surplus. When price is $284, the quantity sold is Q₁_,but when it decreased to $75, the quantity of ticket sold increased to Q₂.

Lower price has made consumers better off, but there was a loss in producer surplus shown by the shaded area. It was found that the boss lost almost $4 million.

Conclusion:

Thus, there was a loss in producer surplus due to fall in price.

Answer 6

Chapter 4, Problem 1BCQ

To determine

Using a diagram explain the consumer and producer surplus between Boss and fans

Concept Introduction:

Demand Curve: The curve shows how the quantity demanded changes due to changes in the price. It is a negatively sloped curve.

Supply Curve: The curve shows how the quantity supplied changes due to changes in the price. It is a positively sloped curve.

Consumer Surplus: It is a difference between the amount that a consumer wants to pay and the real amount which he pays for goods and services.

Producer Surplus: It is the difference between the amount that a producer wants to receive and the real amount which he receives for goods and services.

Expert Solution & Answer

Explanation of Solution

Loose-leaf Version for Economics & LaunchPad (Twelve Month Access), Chapter 4, Problem 1BCQ

Fig 1

In the above table, x-axis shows quantity of tickets sold and y-axis shows the price of ticket.

The market price of ticket is $284, however the boss sold it for only $75.

The reduction in the price has led to loss in the producer surplus and gain in the consumer surplus. When price is $284, the quantity sold is Q₁_,but when it decreased to $75, the quantity of ticket sold increased to Q₂.

Lower price has made consumers better off, but there was a loss in producer surplus shown by the shaded area. It was found that the boss lost almost $4 million.

Conclusion:

Thus, there was a loss in producer surplus due to fall in price.

Answer 7

Chapter 4, Problem 1BCQ

To determine

Using a diagram explain the consumer and producer surplus between Boss and fans

Concept Introduction:

Demand Curve: The curve shows how the quantity demanded changes due to changes in the price. It is a negatively sloped curve.

Supply Curve: The curve shows how the quantity supplied changes due to changes in the price. It is a positively sloped curve.

Consumer Surplus: It is a difference between the amount that a consumer wants to pay and the real amount which he pays for goods and services.

Producer Surplus: It is the difference between the amount that a producer wants to receive and the real amount which he receives for goods and services.

Answer 8

Expert Solution & Answer

Explanation of Solution

Loose-leaf Version for Economics & LaunchPad (Twelve Month Access), Chapter 4, Problem 1BCQ

Fig 1

In the above table, x-axis shows quantity of tickets sold and y-axis shows the price of ticket.

The market price of ticket is $284, however the boss sold it for only $75.

The reduction in the price has led to loss in the producer surplus and gain in the consumer surplus. When price is $284, the quantity sold is Q₁_,but when it decreased to $75, the quantity of ticket sold increased to Q₂.

Lower price has made consumers better off, but there was a loss in producer surplus shown by the shaded area. It was found that the boss lost almost $4 million.

Conclusion:

Thus, there was a loss in producer surplus due to fall in price.