(a) To calculate the total surplus, when the demand curve is D 1 .

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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 5, Problem 15PA

To determine

(a)

To calculate the total surplus, when the demand curve is D₁.

Expert Solution

Explanation of Solution

The market price at equilibrium is calculated by the intersection of the demand curve and the supply curve.

The demand curve D1 and the supply curve intersect at the point, where the market price is $14.

The total surplus is divided into two parts: Consumer surplus and Producer surplus.

The consumer surplus is represented by the area above the price line and below the demand curve, while the producer surplus is represented by the area under the price line and above the supply curve.

The consumer surplus and producer surplus are shown below:

Microeconomics, Chapter 5, Problem 15PA , additional homework tip 1

Total Surplus = Consumer Surplus + Producer Surplus

The consumer surplus is calculated as follows:

Consumer Surplus = 12 × (22−14) × (100−0)Consumer Surplus = 12 × 8 × 100Consumer Surplus = 400

The producer surplus is calculated as follows:

Producer Surplus = 12 × (14−6) × (100−0)Producer Surplus = 12 × 8 × 100Producer Surplus = 400

Total Surplus = 400 + 400 Total Surplus = 800

To determine

(b)

To calculate the total surplus, when the demand curve is D₂.

Expert Solution

Explanation of Solution

The market price at equilibrium is calculated by the intersection of the demand curve and the supply curve.

The demand curve D2 and the supply curve intersect at the point where the market price is $10.

The consumer surplus and producer surplus is shown below:

Microeconomics, Chapter 5, Problem 15PA , additional homework tip 2

Total Surplus = Consumer Surplus + Producer Surplus

Consumer Surplus = 12 × (16−10) × (50−0)Consumer Surplus = 12 × 6 × 50Consumer Surplus = 150

Producer Surplus = 12 × (10−6) × (50−0)Producer Surplus = 12 × 4 × 50Producer Surplus = 100

Total Surplus = 150 +100Total Surplus = 250

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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 5, Problem 15PA

To determine

(a)

To calculate the total surplus, when the demand curve is D₁.

Expert Solution

Explanation of Solution

The market price at equilibrium is calculated by the intersection of the demand curve and the supply curve.

The demand curve D1 and the supply curve intersect at the point, where the market price is $14.

The total surplus is divided into two parts: Consumer surplus and Producer surplus.

The consumer surplus is represented by the area above the price line and below the demand curve, while the producer surplus is represented by the area under the price line and above the supply curve.

The consumer surplus and producer surplus are shown below:

Microeconomics, Chapter 5, Problem 15PA , additional homework tip 1

Total Surplus = Consumer Surplus + Producer Surplus

The consumer surplus is calculated as follows:

Consumer Surplus = 12 × (22−14) × (100−0)Consumer Surplus = 12 × 8 × 100Consumer Surplus = 400

The producer surplus is calculated as follows:

Producer Surplus = 12 × (14−6) × (100−0)Producer Surplus = 12 × 8 × 100Producer Surplus = 400

Total Surplus = 400 + 400 Total Surplus = 800

To determine

(b)

To calculate the total surplus, when the demand curve is D₂.

Expert Solution

Explanation of Solution

The market price at equilibrium is calculated by the intersection of the demand curve and the supply curve.

The demand curve D2 and the supply curve intersect at the point where the market price is $10.

The consumer surplus and producer surplus is shown below:

Microeconomics, Chapter 5, Problem 15PA , additional homework tip 2

Total Surplus = Consumer Surplus + Producer Surplus

Consumer Surplus = 12 × (16−10) × (50−0)Consumer Surplus = 12 × 6 × 50Consumer Surplus = 150

Producer Surplus = 12 × (10−6) × (50−0)Producer Surplus = 12 × 4 × 50Producer Surplus = 100

Total Surplus = 150 +100Total Surplus = 250

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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 5, Problem 15PA

To determine

(a)

To calculate the total surplus, when the demand curve is D₁.

Expert Solution

Explanation of Solution

The market price at equilibrium is calculated by the intersection of the demand curve and the supply curve.

The demand curve D1 and the supply curve intersect at the point, where the market price is $14.

The total surplus is divided into two parts: Consumer surplus and Producer surplus.

The consumer surplus is represented by the area above the price line and below the demand curve, while the producer surplus is represented by the area under the price line and above the supply curve.

The consumer surplus and producer surplus are shown below:

Microeconomics, Chapter 5, Problem 15PA , additional homework tip 1

Total Surplus = Consumer Surplus + Producer Surplus

The consumer surplus is calculated as follows:

Consumer Surplus = 12 × (22−14) × (100−0)Consumer Surplus = 12 × 8 × 100Consumer Surplus = 400

The producer surplus is calculated as follows:

Producer Surplus = 12 × (14−6) × (100−0)Producer Surplus = 12 × 8 × 100Producer Surplus = 400

Total Surplus = 400 + 400 Total Surplus = 800

To determine

(b)

To calculate the total surplus, when the demand curve is D₂.

Expert Solution

Explanation of Solution

The market price at equilibrium is calculated by the intersection of the demand curve and the supply curve.

The demand curve D2 and the supply curve intersect at the point where the market price is $10.

The consumer surplus and producer surplus is shown below:

Microeconomics, Chapter 5, Problem 15PA , additional homework tip 2

Total Surplus = Consumer Surplus + Producer Surplus

Consumer Surplus = 12 × (16−10) × (50−0)Consumer Surplus = 12 × 6 × 50Consumer Surplus = 150

Producer Surplus = 12 × (10−6) × (50−0)Producer Surplus = 12 × 4 × 50Producer Surplus = 100

Total Surplus = 150 +100Total Surplus = 250

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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 5, Problem 15PA

To determine

(a)

To calculate the total surplus, when the demand curve is D₁.

Expert Solution

Explanation of Solution

The market price at equilibrium is calculated by the intersection of the demand curve and the supply curve.

The demand curve D1 and the supply curve intersect at the point, where the market price is $14.

The total surplus is divided into two parts: Consumer surplus and Producer surplus.

The consumer surplus is represented by the area above the price line and below the demand curve, while the producer surplus is represented by the area under the price line and above the supply curve.

The consumer surplus and producer surplus are shown below:

Microeconomics, Chapter 5, Problem 15PA , additional homework tip 1

Total Surplus = Consumer Surplus + Producer Surplus

The consumer surplus is calculated as follows:

Consumer Surplus = 12 × (22−14) × (100−0)Consumer Surplus = 12 × 8 × 100Consumer Surplus = 400

The producer surplus is calculated as follows:

Producer Surplus = 12 × (14−6) × (100−0)Producer Surplus = 12 × 8 × 100Producer Surplus = 400

Total Surplus = 400 + 400 Total Surplus = 800

To determine

(b)

To calculate the total surplus, when the demand curve is D₂.

Expert Solution

Explanation of Solution

The market price at equilibrium is calculated by the intersection of the demand curve and the supply curve.

The demand curve D2 and the supply curve intersect at the point where the market price is $10.

The consumer surplus and producer surplus is shown below:

Microeconomics, Chapter 5, Problem 15PA , additional homework tip 2

Total Surplus = Consumer Surplus + Producer Surplus

Consumer Surplus = 12 × (16−10) × (50−0)Consumer Surplus = 12 × 6 × 50Consumer Surplus = 150

Producer Surplus = 12 × (10−6) × (50−0)Producer Surplus = 12 × 4 × 50Producer Surplus = 100

Total Surplus = 150 +100Total Surplus = 250

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

Answer 5

Chapter 5, Problem 15PA

To determine

(a)

To calculate the total surplus, when the demand curve is D₁.

Expert Solution

Explanation of Solution

The market price at equilibrium is calculated by the intersection of the demand curve and the supply curve.

The demand curve D1 and the supply curve intersect at the point, where the market price is $14.

The total surplus is divided into two parts: Consumer surplus and Producer surplus.

The consumer surplus is represented by the area above the price line and below the demand curve, while the producer surplus is represented by the area under the price line and above the supply curve.

The consumer surplus and producer surplus are shown below:

Microeconomics, Chapter 5, Problem 15PA , additional homework tip 1

Total Surplus = Consumer Surplus + Producer Surplus

The consumer surplus is calculated as follows:

Consumer Surplus = 12 × (22−14) × (100−0)Consumer Surplus = 12 × 8 × 100Consumer Surplus = 400

The producer surplus is calculated as follows:

Producer Surplus = 12 × (14−6) × (100−0)Producer Surplus = 12 × 8 × 100Producer Surplus = 400

Total Surplus = 400 + 400 Total Surplus = 800

To determine

(b)

To calculate the total surplus, when the demand curve is D₂.

Expert Solution

Explanation of Solution

The market price at equilibrium is calculated by the intersection of the demand curve and the supply curve.

The demand curve D2 and the supply curve intersect at the point where the market price is $10.

The consumer surplus and producer surplus is shown below:

Microeconomics, Chapter 5, Problem 15PA , additional homework tip 2

Total Surplus = Consumer Surplus + Producer Surplus

Consumer Surplus = 12 × (16−10) × (50−0)Consumer Surplus = 12 × 6 × 50Consumer Surplus = 150

Producer Surplus = 12 × (10−6) × (50−0)Producer Surplus = 12 × 4 × 50Producer Surplus = 100

Total Surplus = 150 +100Total Surplus = 250

Answer 6

Chapter 5, Problem 15PA

To determine

(a)

To calculate the total surplus, when the demand curve is D₁.

Expert Solution

Explanation of Solution

The market price at equilibrium is calculated by the intersection of the demand curve and the supply curve.

The demand curve D1 and the supply curve intersect at the point, where the market price is $14.

The total surplus is divided into two parts: Consumer surplus and Producer surplus.

The consumer surplus is represented by the area above the price line and below the demand curve, while the producer surplus is represented by the area under the price line and above the supply curve.

The consumer surplus and producer surplus are shown below:

Microeconomics, Chapter 5, Problem 15PA , additional homework tip 1

Total Surplus = Consumer Surplus + Producer Surplus

The consumer surplus is calculated as follows:

Consumer Surplus = 12 × (22−14) × (100−0)Consumer Surplus = 12 × 8 × 100Consumer Surplus = 400

The producer surplus is calculated as follows:

Producer Surplus = 12 × (14−6) × (100−0)Producer Surplus = 12 × 8 × 100Producer Surplus = 400

Total Surplus = 400 + 400 Total Surplus = 800

Answer 7

Chapter 5, Problem 15PA

To determine

(a)

To calculate the total surplus, when the demand curve is D₁.

Answer 8

Expert Solution

Explanation of Solution

The market price at equilibrium is calculated by the intersection of the demand curve and the supply curve.

The demand curve D1 and the supply curve intersect at the point, where the market price is $14.

The total surplus is divided into two parts: Consumer surplus and Producer surplus.

The consumer surplus is represented by the area above the price line and below the demand curve, while the producer surplus is represented by the area under the price line and above the supply curve.

The consumer surplus and producer surplus are shown below:

Microeconomics, Chapter 5, Problem 15PA , additional homework tip 1

Total Surplus = Consumer Surplus + Producer Surplus

The consumer surplus is calculated as follows:

Consumer Surplus = 12 × (22−14) × (100−0)Consumer Surplus = 12 × 8 × 100Consumer Surplus = 400

The producer surplus is calculated as follows:

Producer Surplus = 12 × (14−6) × (100−0)Producer Surplus = 12 × 8 × 100Producer Surplus = 400

Total Surplus = 400 + 400 Total Surplus = 800

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

(b)

To calculate the total surplus, when the demand curve is D₂.

Expert Solution

Explanation of Solution

The market price at equilibrium is calculated by the intersection of the demand curve and the supply curve.

The demand curve D2 and the supply curve intersect at the point where the market price is $10.

The consumer surplus and producer surplus is shown below:

Microeconomics, Chapter 5, Problem 15PA , additional homework tip 2

Total Surplus = Consumer Surplus + Producer Surplus

Consumer Surplus = 12 × (16−10) × (50−0)Consumer Surplus = 12 × 6 × 50Consumer Surplus = 150

Producer Surplus = 12 × (10−6) × (50−0)Producer Surplus = 12 × 4 × 50Producer Surplus = 100

Total Surplus = 150 +100Total Surplus = 250

Answer 13

To determine

(b)

To calculate the total surplus, when the demand curve is D₂.

Answer 14

Expert Solution

Explanation of Solution

The market price at equilibrium is calculated by the intersection of the demand curve and the supply curve.

The demand curve D2 and the supply curve intersect at the point where the market price is $10.

The consumer surplus and producer surplus is shown below:

Microeconomics, Chapter 5, Problem 15PA , additional homework tip 2

Total Surplus = Consumer Surplus + Producer Surplus

Consumer Surplus = 12 × (16−10) × (50−0)Consumer Surplus = 12 × 6 × 50Consumer Surplus = 150

Producer Surplus = 12 × (10−6) × (50−0)Producer Surplus = 12 × 4 × 50Producer Surplus = 100

Total Surplus = 150 +100Total Surplus = 250

Answer 15

Expert Solution

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

Ch. 5 - Prob. 1RQ Ch. 5 - Prob. 2RQ Ch. 5 - Prob. 3RQ Ch. 5 - Prob. 4RQ Ch. 5 - Prob. 5RQ Ch. 5 - Prob. 6RQ Ch. 5 - Prob. 7RQ Ch. 5 - Prob. 8RQ Ch. 5 - Prob. 9RQ Ch. 5 - Prob. 10RQ

(a) To calculate the total surplus, when the demand curve is D 1 .

Concept explainers

(a)

To calculate the total surplus, when the demand curve is D₁.

Explanation of Solution

(b)

To calculate the total surplus, when the demand curve is D₂.

Explanation of Solution

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Chapter 5 Solutions

(a) To calculate the total surplus, when the demand curve is D 1 .

Concept explainers