Microeconomics
2nd Edition
ISBN: 9781259813337
Author: KARLAN, Dean S., Morduch, Jonathan
Publisher: Mcgraw-hill Education,
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Question
Chapter 5, Problem 7RQ
To determine
To check whether there is an increase or a decrease in total surplus due to higher demand for air tickets to Hawaii.
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Students have asked these similar questions
On the market for cherries, supply is inelastic, while demand is elastic. You know that suppliers are not ready to supply any cherries when the price is below $1.5 per pound.
a) On a graph, show the equilibrium price and the equilibrium quantity. Make sure you label the axes and the curves. Then, show the consumer surplus and the producer surplus.
b) Strawberries and cherries are substitutes. The price of strawberries increased. On a graph,show what will happen on the market for cherries. Show the change in the consumer surplus. Show the change in the producer surplus.
c) Forget about part (b). There are issues with the supply chain: transportation companies raise the fees they charge to deliver cherries from the farms to the supermarkets. On a graph, show what will happen on the market for cherries. Show the change in the consumer surplus. Show the change in the producer surplus
Sketch out (on scratch paper) or else imagine a market for pizza with a linear demand curve that starts at zero Q-demanded when P =$10 and then intersects
Supply at P = $8 Q = 100. Find the consumer surplus for that scenario. Just the $ amount but no $ sign.
The following diagram shows supply and demand in the market for smartphones.
Use the black point (plus symbol) to indicate the equilibrium price and quantity of smartphones. Then use the green point (triangle symbol) to fill the
area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus.
PRICE (Dollars per phone)
300
270
240
210
180
150
60
30
0
0
Demand
Supply
20
80 100 120 140 160 180 200
40 60
QUANTITY (Millions of phones)
Total surplus in this market is $
million.
Equilibrium
Consumer Surplus
Producer Surplus
?
Chapter 5 Solutions
Microeconomics
Ch. 5 - Prob. 1RQCh. 5 - Prob. 2RQCh. 5 - Prob. 3RQCh. 5 - Prob. 4RQCh. 5 - Prob. 5RQCh. 5 - Prob. 6RQCh. 5 - Prob. 7RQCh. 5 - Prob. 8RQCh. 5 - Prob. 9RQCh. 5 - Prob. 10RQ
Ch. 5 - Prob. 11RQCh. 5 - Prob. 12RQCh. 5 - Prob. 13RQCh. 5 - Prob. 14RQCh. 5 - Prob. 15RQCh. 5 - Prob. 16RQCh. 5 - Prob. 1PACh. 5 - Prob. 2PACh. 5 - Prob. 3PACh. 5 - Prob. 4PACh. 5 - Prob. 5PACh. 5 - Prob. 6PACh. 5 - Prob. 7PACh. 5 - Prob. 8PACh. 5 - Prob. 10PACh. 5 - Prob. 11PACh. 5 - Prob. 12PACh. 5 - Prob. 13PACh. 5 - Prob. 14PACh. 5 - Prob. 15PACh. 5 - Prob. 16PACh. 5 - Prob. 17PACh. 5 - Prob. 18PACh. 5 - Prob. 19PACh. 5 - Prob. 20PACh. 5 - Prob. 21PACh. 5 - Prob. 22PACh. 5 - Prob. 23PACh. 5 - Prob. 24PACh. 5 - Prob. 25PA
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