(a) The consumer surplus if the price of each karate lesson is P0.

Question

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Answer 1

Question

Chapter 7, Problem 1P

To determine

(a)

The consumer surplus if the price of each karate lesson is P0.

Expert Solution

Answer to Problem 1P

The consumer surplus will be the area a.

Explanation of Solution

In the given figure, the vertical axis is shown as the price of karate lessons and horizontal axis shows the quantity of karate lessons. If the price of each karate lesson is P0, the consumer surplus will be the area a because this is the only part which lies above the price level P0 and below the demand curve.

Economics Concept Introduction

Concept Introduction:

It is defined as the difference between the amount which the consumers are willing to pay and the amount which the consumers actually pay. It is the area of above the price level and below the demand curve.

To determine

(b)

The consumer surplus if the price of each karate lesson reduces from P0 to P1.

Expert Solution

Answer to Problem 1P

The change in consumer surplus will be area(b+c).

Explanation of Solution

In the given figure, the vertical axis is shown as the price of karate lessons and horizontal axis shows the quantity of karate lessons. If the price of each karate lesson reduces from P0 to P1, the consumer surplus will be the sum of area a, b and c.

Because due to fall in the price of karate, more consumers would be willing to join the karate lessons and hence, the quantity demanded also increases.

Economics Concept Introduction

Concept Introduction:

It is defined as the difference between the amount which the consumers are willing to pay and the amount which the consumers actually pay. It is the area of above the price level and below the demand curve.

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Students have asked these similar questions

Question 1. Melissa buys an iPhone for $120 and gets consumer surplus of $80. a) What is her willingness to pay? b) If she had bought the iPhone on sale for $90, what would her consumer surplus have been?

QUESTION 13 If your willingness to pay for a coffee is 35 dirhams, and the price is 20 dirhams. What is your consumer surplus after you buy the coffee?

Myra buys an iPhone for $280 and gets consumer surplus of $120. (a) What is her willingness to pay? (b) If she had bought the iPhone on sale for $180, what would her consumer surplus have been? (c) If the price of an iPhone were $500, what would her consumer surplus have been?

Answer 2

Question

Chapter 7, Problem 1P

To determine

(a)

The consumer surplus if the price of each karate lesson is P0.

Expert Solution

Answer to Problem 1P

The consumer surplus will be the area a.

Explanation of Solution

In the given figure, the vertical axis is shown as the price of karate lessons and horizontal axis shows the quantity of karate lessons. If the price of each karate lesson is P0, the consumer surplus will be the area a because this is the only part which lies above the price level P0 and below the demand curve.

Economics Concept Introduction

Concept Introduction:

It is defined as the difference between the amount which the consumers are willing to pay and the amount which the consumers actually pay. It is the area of above the price level and below the demand curve.

To determine

(b)

The consumer surplus if the price of each karate lesson reduces from P0 to P1.

Expert Solution

Answer to Problem 1P

The change in consumer surplus will be area(b+c).

Explanation of Solution

In the given figure, the vertical axis is shown as the price of karate lessons and horizontal axis shows the quantity of karate lessons. If the price of each karate lesson reduces from P0 to P1, the consumer surplus will be the sum of area a, b and c.

Because due to fall in the price of karate, more consumers would be willing to join the karate lessons and hence, the quantity demanded also increases.

Economics Concept Introduction

Concept Introduction:

It is defined as the difference between the amount which the consumers are willing to pay and the amount which the consumers actually pay. It is the area of above the price level and below the demand curve.

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 7, Problem 1P

To determine

(a)

The consumer surplus if the price of each karate lesson is P0.

Expert Solution

Answer to Problem 1P

The consumer surplus will be the area a.

Explanation of Solution

In the given figure, the vertical axis is shown as the price of karate lessons and horizontal axis shows the quantity of karate lessons. If the price of each karate lesson is P0, the consumer surplus will be the area a because this is the only part which lies above the price level P0 and below the demand curve.

Economics Concept Introduction

Concept Introduction:

It is defined as the difference between the amount which the consumers are willing to pay and the amount which the consumers actually pay. It is the area of above the price level and below the demand curve.

To determine

(b)

The consumer surplus if the price of each karate lesson reduces from P0 to P1.

Expert Solution

Answer to Problem 1P

The change in consumer surplus will be area(b+c).

Explanation of Solution

In the given figure, the vertical axis is shown as the price of karate lessons and horizontal axis shows the quantity of karate lessons. If the price of each karate lesson reduces from P0 to P1, the consumer surplus will be the sum of area a, b and c.

Because due to fall in the price of karate, more consumers would be willing to join the karate lessons and hence, the quantity demanded also increases.

Economics Concept Introduction

Concept Introduction:

It is defined as the difference between the amount which the consumers are willing to pay and the amount which the consumers actually pay. It is the area of above the price level and below the demand curve.

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 7, Problem 1P

To determine

(a)

The consumer surplus if the price of each karate lesson is P0.

Expert Solution

Answer to Problem 1P

The consumer surplus will be the area a.

Explanation of Solution

In the given figure, the vertical axis is shown as the price of karate lessons and horizontal axis shows the quantity of karate lessons. If the price of each karate lesson is P0, the consumer surplus will be the area a because this is the only part which lies above the price level P0 and below the demand curve.

Economics Concept Introduction

Concept Introduction:

It is defined as the difference between the amount which the consumers are willing to pay and the amount which the consumers actually pay. It is the area of above the price level and below the demand curve.

To determine

(b)

The consumer surplus if the price of each karate lesson reduces from P0 to P1.

Expert Solution

Answer to Problem 1P

The change in consumer surplus will be area(b+c).

Explanation of Solution

In the given figure, the vertical axis is shown as the price of karate lessons and horizontal axis shows the quantity of karate lessons. If the price of each karate lesson reduces from P0 to P1, the consumer surplus will be the sum of area a, b and c.

Because due to fall in the price of karate, more consumers would be willing to join the karate lessons and hence, the quantity demanded also increases.

Economics Concept Introduction

Concept Introduction:

It is defined as the difference between the amount which the consumers are willing to pay and the amount which the consumers actually pay. It is the area of above the price level and below the demand curve.

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 7, Problem 1P

To determine

(a)

The consumer surplus if the price of each karate lesson is P0.

Expert Solution

Answer to Problem 1P

The consumer surplus will be the area a.

Explanation of Solution

In the given figure, the vertical axis is shown as the price of karate lessons and horizontal axis shows the quantity of karate lessons. If the price of each karate lesson is P0, the consumer surplus will be the area a because this is the only part which lies above the price level P0 and below the demand curve.

Economics Concept Introduction

Concept Introduction:

It is defined as the difference between the amount which the consumers are willing to pay and the amount which the consumers actually pay. It is the area of above the price level and below the demand curve.

To determine

(b)

The consumer surplus if the price of each karate lesson reduces from P0 to P1.

Expert Solution

Answer to Problem 1P

The change in consumer surplus will be area(b+c).

Explanation of Solution

In the given figure, the vertical axis is shown as the price of karate lessons and horizontal axis shows the quantity of karate lessons. If the price of each karate lesson reduces from P0 to P1, the consumer surplus will be the sum of area a, b and c.

Because due to fall in the price of karate, more consumers would be willing to join the karate lessons and hence, the quantity demanded also increases.

Economics Concept Introduction

Concept Introduction:

It is defined as the difference between the amount which the consumers are willing to pay and the amount which the consumers actually pay. It is the area of above the price level and below the demand curve.

Answer 6

Chapter 7, Problem 1P

To determine

(a)

The consumer surplus if the price of each karate lesson is P0.

Expert Solution

Answer to Problem 1P

The consumer surplus will be the area a.

Explanation of Solution

In the given figure, the vertical axis is shown as the price of karate lessons and horizontal axis shows the quantity of karate lessons. If the price of each karate lesson is P0, the consumer surplus will be the area a because this is the only part which lies above the price level P0 and below the demand curve.

Economics Concept Introduction

Concept Introduction:

It is defined as the difference between the amount which the consumers are willing to pay and the amount which the consumers actually pay. It is the area of above the price level and below the demand curve.

Answer 7

Chapter 7, Problem 1P

To determine

(a)

The consumer surplus if the price of each karate lesson is P0.

Answer 8

Expert Solution

Answer to Problem 1P

The consumer surplus will be the area a.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

In the given figure, the vertical axis is shown as the price of karate lessons and horizontal axis shows the quantity of karate lessons. If the price of each karate lesson is P0, the consumer surplus will be the area a because this is the only part which lies above the price level P0 and below the demand curve.

Answer 13

Economics Concept Introduction

Concept Introduction:

It is defined as the difference between the amount which the consumers are willing to pay and the amount which the consumers actually pay. It is the area of above the price level and below the demand curve.

Answer 14

To determine

(b)

The consumer surplus if the price of each karate lesson reduces from P0 to P1.

Expert Solution

Answer to Problem 1P

The change in consumer surplus will be area(b+c).

Explanation of Solution

In the given figure, the vertical axis is shown as the price of karate lessons and horizontal axis shows the quantity of karate lessons. If the price of each karate lesson reduces from P0 to P1, the consumer surplus will be the sum of area a, b and c.

Because due to fall in the price of karate, more consumers would be willing to join the karate lessons and hence, the quantity demanded also increases.

Economics Concept Introduction

Concept Introduction:

It is defined as the difference between the amount which the consumers are willing to pay and the amount which the consumers actually pay. It is the area of above the price level and below the demand curve.

Answer 15

To determine

(b)

The consumer surplus if the price of each karate lesson reduces from P0 to P1.

Answer 16

Expert Solution

Answer to Problem 1P

The change in consumer surplus will be area(b+c).

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

In the given figure, the vertical axis is shown as the price of karate lessons and horizontal axis shows the quantity of karate lessons. If the price of each karate lesson reduces from P0 to P1, the consumer surplus will be the sum of area a, b and c.

Because due to fall in the price of karate, more consumers would be willing to join the karate lessons and hence, the quantity demanded also increases.

Answer 21

Economics Concept Introduction

Concept Introduction:

It is defined as the difference between the amount which the consumers are willing to pay and the amount which the consumers actually pay. It is the area of above the price level and below the demand curve.