Total market surplus in equilibrium

Question

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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 50, Problem 1CYU

To determine

Total market surplus in equilibrium

Expert Solution & Answer

Explanation of Solution

From the tables, the quantity supplied at a price of $0.50 is equal to the quantity demanded, therefore the price of $0.50 is the equilibrium price. At this price, the unit or quantity of five peppers would be bought and sold whereas C would buy 3 peppers with $0.40 of consumer

surplus on the first unit and $0.20 on the second. And, J would buy 2 peppers with a consumer surplus of $0.30 on the first and $0.10 on the second unit. Therefore, the total consumer surplus is

$1.00.

Moreover, from producers, Ca supplied 3 peppers with a producer surplus of $0.40 on the first unit, $0.40 on the second, and $0.10 on the third unit. And, Ja would supply 2 units and receive a producer surplus of $0.20 on

The first unit and $0.00 on the second and therefore, the total producer surplus would be $1.10.

Therefore, the total market surplus would be:

= Consumers’ surplus+producers’ surplus= $1.00 + $1.10= $2.10.

Economics Concept Introduction

Introduction: Any excess in production, earnings, or the supply of goods is called surplus which is more than the need.

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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 50, Problem 1CYU

To determine

Total market surplus in equilibrium

Expert Solution & Answer

Explanation of Solution

From the tables, the quantity supplied at a price of $0.50 is equal to the quantity demanded, therefore the price of $0.50 is the equilibrium price. At this price, the unit or quantity of five peppers would be bought and sold whereas C would buy 3 peppers with $0.40 of consumer

surplus on the first unit and $0.20 on the second. And, J would buy 2 peppers with a consumer surplus of $0.30 on the first and $0.10 on the second unit. Therefore, the total consumer surplus is

$1.00.

Moreover, from producers, Ca supplied 3 peppers with a producer surplus of $0.40 on the first unit, $0.40 on the second, and $0.10 on the third unit. And, Ja would supply 2 units and receive a producer surplus of $0.20 on

The first unit and $0.00 on the second and therefore, the total producer surplus would be $1.10.

Therefore, the total market surplus would be:

= Consumers’ surplus+producers’ surplus= $1.00 + $1.10= $2.10.

Economics Concept Introduction

Introduction: Any excess in production, earnings, or the supply of goods is called surplus which is more than the need.

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

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 50, Problem 1CYU

To determine

Total market surplus in equilibrium

Expert Solution & Answer

Explanation of Solution

From the tables, the quantity supplied at a price of $0.50 is equal to the quantity demanded, therefore the price of $0.50 is the equilibrium price. At this price, the unit or quantity of five peppers would be bought and sold whereas C would buy 3 peppers with $0.40 of consumer

surplus on the first unit and $0.20 on the second. And, J would buy 2 peppers with a consumer surplus of $0.30 on the first and $0.10 on the second unit. Therefore, the total consumer surplus is

$1.00.

Moreover, from producers, Ca supplied 3 peppers with a producer surplus of $0.40 on the first unit, $0.40 on the second, and $0.10 on the third unit. And, Ja would supply 2 units and receive a producer surplus of $0.20 on

The first unit and $0.00 on the second and therefore, the total producer surplus would be $1.10.

Therefore, the total market surplus would be:

= Consumers’ surplus+producers’ surplus= $1.00 + $1.10= $2.10.

Economics Concept Introduction

Introduction: Any excess in production, earnings, or the supply of goods is called surplus which is more than the need.

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 50, Problem 1CYU

To determine

Total market surplus in equilibrium

Expert Solution & Answer

Explanation of Solution

From the tables, the quantity supplied at a price of $0.50 is equal to the quantity demanded, therefore the price of $0.50 is the equilibrium price. At this price, the unit or quantity of five peppers would be bought and sold whereas C would buy 3 peppers with $0.40 of consumer

surplus on the first unit and $0.20 on the second. And, J would buy 2 peppers with a consumer surplus of $0.30 on the first and $0.10 on the second unit. Therefore, the total consumer surplus is

$1.00.

Moreover, from producers, Ca supplied 3 peppers with a producer surplus of $0.40 on the first unit, $0.40 on the second, and $0.10 on the third unit. And, Ja would supply 2 units and receive a producer surplus of $0.20 on

The first unit and $0.00 on the second and therefore, the total producer surplus would be $1.10.

Therefore, the total market surplus would be:

= Consumers’ surplus+producers’ surplus= $1.00 + $1.10= $2.10.

Economics Concept Introduction

Introduction: Any excess in production, earnings, or the supply of goods is called surplus which is more than the need.

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 50, Problem 1CYU

To determine

Total market surplus in equilibrium

Expert Solution & Answer

Explanation of Solution

From the tables, the quantity supplied at a price of $0.50 is equal to the quantity demanded, therefore the price of $0.50 is the equilibrium price. At this price, the unit or quantity of five peppers would be bought and sold whereas C would buy 3 peppers with $0.40 of consumer

surplus on the first unit and $0.20 on the second. And, J would buy 2 peppers with a consumer surplus of $0.30 on the first and $0.10 on the second unit. Therefore, the total consumer surplus is

$1.00.

Moreover, from producers, Ca supplied 3 peppers with a producer surplus of $0.40 on the first unit, $0.40 on the second, and $0.10 on the third unit. And, Ja would supply 2 units and receive a producer surplus of $0.20 on

The first unit and $0.00 on the second and therefore, the total producer surplus would be $1.10.

Therefore, the total market surplus would be:

= Consumers’ surplus+producers’ surplus= $1.00 + $1.10= $2.10.

Economics Concept Introduction

Introduction: Any excess in production, earnings, or the supply of goods is called surplus which is more than the need.

Answer 6

Chapter 50, Problem 1CYU

To determine

Total market surplus in equilibrium

Expert Solution & Answer

Explanation of Solution

From the tables, the quantity supplied at a price of $0.50 is equal to the quantity demanded, therefore the price of $0.50 is the equilibrium price. At this price, the unit or quantity of five peppers would be bought and sold whereas C would buy 3 peppers with $0.40 of consumer

surplus on the first unit and $0.20 on the second. And, J would buy 2 peppers with a consumer surplus of $0.30 on the first and $0.10 on the second unit. Therefore, the total consumer surplus is

$1.00.

Moreover, from producers, Ca supplied 3 peppers with a producer surplus of $0.40 on the first unit, $0.40 on the second, and $0.10 on the third unit. And, Ja would supply 2 units and receive a producer surplus of $0.20 on

The first unit and $0.00 on the second and therefore, the total producer surplus would be $1.10.

Therefore, the total market surplus would be:

= Consumers’ surplus+producers’ surplus= $1.00 + $1.10= $2.10.

Economics Concept Introduction

Introduction: Any excess in production, earnings, or the supply of goods is called surplus which is more than the need.

Answer 7

Chapter 50, Problem 1CYU

To determine

Total market surplus in equilibrium

Answer 8

Expert Solution & Answer

Explanation of Solution

From the tables, the quantity supplied at a price of $0.50 is equal to the quantity demanded, therefore the price of $0.50 is the equilibrium price. At this price, the unit or quantity of five peppers would be bought and sold whereas C would buy 3 peppers with $0.40 of consumer

surplus on the first unit and $0.20 on the second. And, J would buy 2 peppers with a consumer surplus of $0.30 on the first and $0.10 on the second unit. Therefore, the total consumer surplus is

$1.00.

Moreover, from producers, Ca supplied 3 peppers with a producer surplus of $0.40 on the first unit, $0.40 on the second, and $0.10 on the third unit. And, Ja would supply 2 units and receive a producer surplus of $0.20 on

The first unit and $0.00 on the second and therefore, the total producer surplus would be $1.10.

Therefore, the total market surplus would be:

= Consumers’ surplus+producers’ surplus= $1.00 + $1.10= $2.10.