Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Chapter 7, Problem 5P
To determine
The connection between total surplus and efficient level of output with the help of
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STUDY NOTES
The value of x at equilibrium is.
The value of p at equilibrium is $
Find the consumers' surplus and the producers' surplus at the equlibrium level for the given
price-demand and price-supply equations. Include a graph that identifies the consumers'
surplus and the producers' surplus. Round all values to the nearest integer.
p=D(x)=39-0.09x; p= S(x)=11+0.05x
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The consumers' surplus at equilibrium is $.
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The producers' surplus at equilibrium is $.
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If the deadweight loss in the market represented by the graph is $1,400, what is the actual economic surplus?
The market demand function for corn is
Qd = 19 - 5P
The market supply function is
QS = 5P - 4
both quantities measured in billions of bushels per year.
Instructions: Round all quantities to the nearest whole number and prices to 2 decimal places.
a. What is consumer surplus at the competitive market equilibrium?
b. What is producer surplus at the competitive market equilibrium?
c. What is aggregate surplus at this equilibrium?
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