What is consumer surplus is and its relationship to the demand curve? Concept Introduction: Consumer Surplus: The consumer surplus is the differences between the amounts that people are willing to pay for good or service and the amount they actually pay for the commodity. The consumer surplus is calculated by deducting the willingness to pay for the commodity and actual payment for the commodity. Demand curve: Demand curve is the graphical representation of the demand schedule. Demand: The demand is defined as the ability to pay for a goods and services.

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Answer 1

Question

Chapter 4, Problem aWYWL

To determine

To explain:

What is consumer surplus is and its relationship to the demand curve?

Concept Introduction:

Consumer Surplus:

The consumer surplus is the differences between the amounts that people are willing to pay for good or service and the amount they actually pay for the commodity. The consumer surplus is calculated by deducting the willingness to pay for the commodity and actual payment for the commodity.

Demand curve:

Demand curve is the graphical representation of the demand schedule.

Demand:

The demand is defined as the ability to pay for a goods and services.

Expert Solution & Answer

Explanation of Solution

LL MICRO + SAPLING PLUS 1 TERM, Chapter 4, Problem aWYWL

In the above graph the coloured section shows the consumer surplus, the consumer surplus is the differences between the amounts that people are willing to pay for good or service and the amount they actually pay for the commodity. The consumer surplus lies below the demand curve and above the price line. An increase in the price of the commodity will reduce the consumer surplus and a decrease in the price of commodity increase the consumer surplus. The relationship between demand curve and consumer surplus is that the demand curve represents the willingness to pay for the commodity. For instance when there is a price increase a few people want to buy the goods than before so the willingness to pay for the commodity has decreased.

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1. Suppose that the two nations face the following benefits of pollution, B, and costs of abatement, C: BN = 10, Bs = 7; CN = 5, Cs = 4. Further assume that if the nation chooses to abate pollution, it still receives the benefits of pollution but now must pay the cost of abatement as well. a. Identify the payoffs that accrue to each nation under the four different possible outcomes of the game and present these payoffs in the normal form of the game. b. Recall that the term dominant strategy defines the condition that a player in a game would prefer to play that strategy (in this case either pollute or abate) regardless of the strategy chosen by the other player in the game. Does either nation have a dominant strategy in this game? If so, what is it? c. Identify the Nash equilibria, or non-cooperative equilibria, of this game.

Answer 2

Question

Chapter 4, Problem aWYWL

To determine

To explain:

What is consumer surplus is and its relationship to the demand curve?

Concept Introduction:

Consumer Surplus:

The consumer surplus is the differences between the amounts that people are willing to pay for good or service and the amount they actually pay for the commodity. The consumer surplus is calculated by deducting the willingness to pay for the commodity and actual payment for the commodity.

Demand curve:

Demand curve is the graphical representation of the demand schedule.

Demand:

The demand is defined as the ability to pay for a goods and services.

Expert Solution & Answer

Explanation of Solution

LL MICRO + SAPLING PLUS 1 TERM, Chapter 4, Problem aWYWL

In the above graph the coloured section shows the consumer surplus, the consumer surplus is the differences between the amounts that people are willing to pay for good or service and the amount they actually pay for the commodity. The consumer surplus lies below the demand curve and above the price line. An increase in the price of the commodity will reduce the consumer surplus and a decrease in the price of commodity increase the consumer surplus. The relationship between demand curve and consumer surplus is that the demand curve represents the willingness to pay for the commodity. For instance when there is a price increase a few people want to buy the goods than before so the willingness to pay for the commodity has decreased.

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Answer 3

Question

Chapter 4, Problem aWYWL

To determine

To explain:

What is consumer surplus is and its relationship to the demand curve?

Concept Introduction:

Consumer Surplus:

The consumer surplus is the differences between the amounts that people are willing to pay for good or service and the amount they actually pay for the commodity. The consumer surplus is calculated by deducting the willingness to pay for the commodity and actual payment for the commodity.

Demand curve:

Demand curve is the graphical representation of the demand schedule.

Demand:

The demand is defined as the ability to pay for a goods and services.

Expert Solution & Answer

Explanation of Solution

LL MICRO + SAPLING PLUS 1 TERM, Chapter 4, Problem aWYWL

In the above graph the coloured section shows the consumer surplus, the consumer surplus is the differences between the amounts that people are willing to pay for good or service and the amount they actually pay for the commodity. The consumer surplus lies below the demand curve and above the price line. An increase in the price of the commodity will reduce the consumer surplus and a decrease in the price of commodity increase the consumer surplus. The relationship between demand curve and consumer surplus is that the demand curve represents the willingness to pay for the commodity. For instance when there is a price increase a few people want to buy the goods than before so the willingness to pay for the commodity has decreased.

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Answer 4

Question

Chapter 4, Problem aWYWL

To determine

To explain:

What is consumer surplus is and its relationship to the demand curve?

Concept Introduction:

Consumer Surplus:

The consumer surplus is the differences between the amounts that people are willing to pay for good or service and the amount they actually pay for the commodity. The consumer surplus is calculated by deducting the willingness to pay for the commodity and actual payment for the commodity.

Demand curve:

Demand curve is the graphical representation of the demand schedule.

Demand:

The demand is defined as the ability to pay for a goods and services.

Expert Solution & Answer

Explanation of Solution

LL MICRO + SAPLING PLUS 1 TERM, Chapter 4, Problem aWYWL

In the above graph the coloured section shows the consumer surplus, the consumer surplus is the differences between the amounts that people are willing to pay for good or service and the amount they actually pay for the commodity. The consumer surplus lies below the demand curve and above the price line. An increase in the price of the commodity will reduce the consumer surplus and a decrease in the price of commodity increase the consumer surplus. The relationship between demand curve and consumer surplus is that the demand curve represents the willingness to pay for the commodity. For instance when there is a price increase a few people want to buy the goods than before so the willingness to pay for the commodity has decreased.

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 aWYWL

To determine

To explain:

What is consumer surplus is and its relationship to the demand curve?

Concept Introduction:

Consumer Surplus:

The consumer surplus is the differences between the amounts that people are willing to pay for good or service and the amount they actually pay for the commodity. The consumer surplus is calculated by deducting the willingness to pay for the commodity and actual payment for the commodity.

Demand curve:

Demand curve is the graphical representation of the demand schedule.

Demand:

The demand is defined as the ability to pay for a goods and services.

Expert Solution & Answer

Explanation of Solution

LL MICRO + SAPLING PLUS 1 TERM, Chapter 4, Problem aWYWL

In the above graph the coloured section shows the consumer surplus, the consumer surplus is the differences between the amounts that people are willing to pay for good or service and the amount they actually pay for the commodity. The consumer surplus lies below the demand curve and above the price line. An increase in the price of the commodity will reduce the consumer surplus and a decrease in the price of commodity increase the consumer surplus. The relationship between demand curve and consumer surplus is that the demand curve represents the willingness to pay for the commodity. For instance when there is a price increase a few people want to buy the goods than before so the willingness to pay for the commodity has decreased.

Answer 6

Chapter 4, Problem aWYWL

To determine

To explain:

What is consumer surplus is and its relationship to the demand curve?

Concept Introduction:

Consumer Surplus:

The consumer surplus is the differences between the amounts that people are willing to pay for good or service and the amount they actually pay for the commodity. The consumer surplus is calculated by deducting the willingness to pay for the commodity and actual payment for the commodity.

Demand curve:

Demand curve is the graphical representation of the demand schedule.

Demand:

The demand is defined as the ability to pay for a goods and services.

Expert Solution & Answer

Explanation of Solution

LL MICRO + SAPLING PLUS 1 TERM, Chapter 4, Problem aWYWL

In the above graph the coloured section shows the consumer surplus, the consumer surplus is the differences between the amounts that people are willing to pay for good or service and the amount they actually pay for the commodity. The consumer surplus lies below the demand curve and above the price line. An increase in the price of the commodity will reduce the consumer surplus and a decrease in the price of commodity increase the consumer surplus. The relationship between demand curve and consumer surplus is that the demand curve represents the willingness to pay for the commodity. For instance when there is a price increase a few people want to buy the goods than before so the willingness to pay for the commodity has decreased.

Answer 7

Chapter 4, Problem aWYWL

To determine

To explain:

What is consumer surplus is and its relationship to the demand curve?

Concept Introduction:

Consumer Surplus:

The consumer surplus is the differences between the amounts that people are willing to pay for good or service and the amount they actually pay for the commodity. The consumer surplus is calculated by deducting the willingness to pay for the commodity and actual payment for the commodity.

Demand curve:

Demand curve is the graphical representation of the demand schedule.

Demand:

The demand is defined as the ability to pay for a goods and services.

Answer 8

Expert Solution & Answer

Explanation of Solution

LL MICRO + SAPLING PLUS 1 TERM, Chapter 4, Problem aWYWL

In the above graph the coloured section shows the consumer surplus, the consumer surplus is the differences between the amounts that people are willing to pay for good or service and the amount they actually pay for the commodity. The consumer surplus lies below the demand curve and above the price line. An increase in the price of the commodity will reduce the consumer surplus and a decrease in the price of commodity increase the consumer surplus. The relationship between demand curve and consumer surplus is that the demand curve represents the willingness to pay for the commodity. For instance when there is a price increase a few people want to buy the goods than before so the willingness to pay for the commodity has decreased.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 4 - Prob. aWYWL Ch. 4 - Prob. bWYWL Ch. 4 - Prob. cWYWL Ch. 4 - Prob. dWYWL Ch. 4 - Prob. eWYWL Ch. 4 - Prob. 1QFT Ch. 4 - Prob. 2QFT Ch. 4 - Prob. 3QFT Ch. 4 - Prob. 1P Ch. 4 - Prob. 2P

Explanation of Solution

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Chapter 4 Solutions