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.

Question

Want to see more full solutions like this?

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

Microeconomics:, 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!

Students have asked these similar questions

Suppose that a paper mill "feeds" a downstream box mill. For the downstream mill, the marginal profitability of producing boxes declines with volume. For example, the first unit of boxes increases earnings by $10, the second by $9, the third by $8, and so on, until the tenth unit increases profit by just $1. The cost the upstream mill incurs for producing enough paper (one "unit" of paper) to make one unit of boxes is $3.50. Assume the two mills operate as separate profit centers, and the paper mill sets the price of paper. It follows that the marginal profitability of boxes represents the highest price that the box division would be willing to pay the paper division for boxes.. Furthermore, assume that fixed costs are $0 for the paper mill. The following table summarizes the quantity, total revenue, and marginal costs from the perspective of the paper mill for selling paper to the box mill at various prices. In the following table, fill in the marginal revenue, total cost, and total…

Planes frequently push back from the gate on time, but then wait 2 feet away from the gate until it is time to queue up for takeoff. This increases fuel consumption and increases the time that passengers must sit in a cramped plane awaiting takeoff. The following table shows the pay schedule for the flight crew. Pay Per diem Holding pay per hour Flight Attendant Captain First Officer $3 $3 $3 $20 $20 $20 Hourly wage (after push back) $38 $184 $50 Per diem pay indicates how much the flight crew earns once it checks into the airport. Holding pay indicates how much the flight crew earns after it loads the plane. Hourly wage indicates how much the flight crew earns after it pushes back from the gate and turns on the beacon. In this scenario, who does not have an incentive to push back from the gate as early as possible? Check all that apply. Captain Flight attendants Passengers First officer True or False: Allowing the airline to decide when to push back from the gate would reduce…

This Wendy’s commercial confuses the notions of appreciation and consumer surplus. Recall that consumer surplus is the difference between what a consumer is willing to pay for a good and what they actually pay for it. According to standard economic theory, consumer surplus must always be

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

Microeconomics:, 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 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

Microeconomics:, 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 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

Microeconomics:, 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

Microeconomics:, 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

Microeconomics:, 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

Microeconomics:, 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

Want to see more full solutions like this?

Chapter 4 Solutions