Problem 15: In public policy, governments are concerned about the welfare of consumers=and producers. Take the demand function D(p) = 4-p² and the supply function S(p) =4p 1. What are the consumer and producer surplus?-5(A) Consumer Surplus:3'3(B) Consumer Surplus:5'(C) Consumer Surplus: 3;(D) Consumer Surplus:(E) None of the aboveProducer Surplus:5³988Producer Surplus:9Producer Surplus: 8Producer Surplus:00109

Demand function: D(p_=4-p2 ..... (1) Supply function: S(p)=4p-1 .... (2) We need equilibrium…

Problem 15: In public policy, governments are concerned about the welfare of consumers and producers. Take the demand function D(p) = 4 - p² and the supply function S(p) 4p 1. What are the consumer and producer surplus? 5 (D) Consumer Surplus: (E) None of the above 9 (A) Consumer Surplus: Producer Surplus: 3 (B) Consumer Surplus: Producer Surplus: 5¹ (C) Consumer Surplus: 3; Producer Surplus: 8 3 Producer Surplus: 100001000 8 9 69 8 =

Problem 15: In public policy, governments are concerned about the welfare of consumers and producers. Take the demand function D(p) = 4 - p² and the supply function S(p) 4p 1. What are the consumer and producer surplus? 5 (D) Consumer Surplus: (E) None of the above 9 (A) Consumer Surplus: Producer Surplus: 3 (B) Consumer Surplus: Producer Surplus: 5¹ (C) Consumer Surplus: 3; Producer Surplus: 8 3 Producer Surplus: 100001000 8 9 69 8 =

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 1P

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Problem 15: In public policy, governments are concerned about the welfare of consumers and producers. Take the demand function D(p) = 4-p² and the supply function S(p) 4p 1. What are the consumer and producer surplus? (A) Consumer Surplus: (B) Consumer Surplus: 10 10000 120 (D) Consumer Surplus: (E) None of the above 5 3 3 Producer Surplus: 3 √³3 5 Producer Surplus: 9 (C) Consumer Surplus: 3; Producer Surplus: 8 Producer Surplus: 1∞∞ 19 100100 8 =
1. Define "consumer surplus" and "producer surplus." Consumer surplus (CS) is the benefit surplus received by a consumer or consumers through market transactions. A CS arises because all consumers pay the equilibrium price even though some consumers would be willing to pay more. CS is measured as the difference between the (maximum. minimum ) price a consumer is (or consumers are) willing to pay (WTP) ( plus, minus , the same as ) the actual price. Consumer surplus is (directly, inversely) related to price. Producer surplus (PS) is the benefit surplus received by a producer or producers through market transactions. A PS arises because some producers are willing to sell a product at a lower price than the equilibrium price. PS is measured as the difference between the actual price the producer receives (or producers receive) and the (maximum, minimum ) price a producer is (or producers are) willing to accept (WTA) as a selling price. Producer surplus is directly, inversely) related to…
3. Consider the supply and demand graph below to answer three questions: (a) Use a letter to identify the area of maximum consumer surplus; (b) Use a letter to identify the area of maximum producer surplus; (c) Why is the output level shown by the vertical dashed line one that is allocatively efficient from a marginal cost and marginal benefit perspective? Price 0 b с d Quantity S D
D(x) is the price, in dollars per unit, that consumers are willing to pay for x units of an item, and S(x) is the price, in dollars per unit, that producers are willing to accept for x units. Find (a) the equilibrium point, (b) the consumer surplus at the equilibrium point, and (c) the producer surplus at the equilibrium point. 3 1 D(x) = -x+6, S(x) = +1 (a) Find the equilibrium point. (Type an ordered pair, using integers or decimals.)
D(x) is the price, in dollars per unit, that consumers are willing to pay for x units of an item, and S(x) is the price, in dollars per unit, that producers are willing to accept for x units. Find (a) the equilibrium point, (b) the consumer surplus at the equilibrium point, and (c) the producer surplus at the equilibrium point. D(x) = 5 - x, for 0sxs5; S(x) = Vx+ 1 (a) What are the coordinates of the equilibrium point? (Type an ordered pair.)
Suppose demand is given by PD = 20 – .03QD and supply is given by PS = 6 + .04QS. (a) What is the equilibrium quantity? (b) What is the equilibrium price? (c) What is the consumer surplus? (d) What is the producer surplus?
1. If the popular television show The Bachelor is shown on pay-per-view television every Monday at 9 p.m., then the demand curve for each episode is given in the accompanying graph 50 40 30 20 10 16 32 48 64 80 Viewing households (millions) If each episode were shown for free, total economic surplus would be Multiple Choice $4,000 million $2,000 million $1,280 million $720 million Cost ($/episode)
D(x) is the price, in dollars per unit, that consumers are willing to pay for x units of an item, and S(x) is the price, in dollars per unit, that producers are willing to accept for x units. Find (a) the equilibrium point, (b) the consumer surplus at the equilibrium point, and (c) the producer surplus at the equilibrium point D(x)=2000-10x, S(x) = 950 + 25x THERE (a) What are the coordinates of the equilibrium point? (Type an ordered pair.) (b) What is the consumer surplus at the equilibrium point? (Round to the nearest cent as needed.) (c) What is the producer surplus at the equilibrium point? (Round to the nearest cent as needed.) AL AL
2) Define and provide an example of the opportunity cost (Minimum 5 lines) 3) Find the equilibrium price and quantity, the consumer surplus, producer surplus, and total surplus in the market represented by the following equations ( Pd=10-2Qd Ps=2+2Qs
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1.) Based on this figure, please answer a, b and c -do not forget to include in your analysis the calculations of changes in price and quantity A.) According to this graph, how much is the consumer surplus (when the price of equilibrium is $5)? B.) According to this graph, how much is the producer surplus (when the price of equilibrium is $5)? C.) Based on your answer for a) and b), how much is the total surplus for the economy?