10 Supply 7.5 2.5 Demand 200 400 600 800 Q When the market in the graph above is in equilibrium, consumer surplus is equal to: 1000 O 1500 500 2000
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- only typed answer Albin’s inverse demand function for pretzels is p( q) = 49 – 6 q, where q is the number of pretzels that he consumes. Currently, the price is $1 per pretzel. If the price of pretzels rises to $7 per pretzel, the change in Albin’s consumer surplus is a. –$56. b. –$42. c. –$45. d. –$90. e. –$42.Assume the price of a particular paint brush is $3.50. Denise purchases the paint brush for $3.50 but was wiling to pay $5.00. Ted purchases the paint brush for $3.50 but was willing to pay $4.00. What is the total consumer surplus for Denise and Ted? Group of answer choices $2.00 $4.00 $5.00 $3.55 $1.502. Individual demand and consumer surplus Consider the market for electric vehicles. The market price of each electric vehicle is $280,000, and each consumer demands no more than one electric vehicle. Suppose that Manuel is the only consumer in the electric vehicle market. Their willingness to pay for an electric vehicle is $490,000. Based on Manuel's willingness to pay, the following graph shows his demand curve for electric vehicles. Shade the area representing Manuel's consumer surplus using the green rectangle (triangle symbols). Manuel’s Consumer Surplus012345560490420350280210140700PRICE (Thousands of dollars)QUANTITY (Electric vehicles)Manuel’s DemandMarket Price Now, suppose another buyer, Poornima, enters the market for electric vehicles, and her willingness to pay is $420,000. Based on Poornima's and Manuel's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Manuel's…
- Suppose you are at a flea market and are considering buying a box of vintage records. You are tryingto bargain down the price, but the seller overhearsyou telling a friend that you are willing to pay upto $50. Why is your consumer surplus now likelyto be lower than it would have been if the sellerhadn’t overheard you?The above graph indicates Robert’s demand for ice-cream in a year. What is the consumer surplus of Robert when he consumes 40 ice-creams at Rs. 8? a. 253 b. 245 c. 565 d. 320Consumer surplus: define it and explain how economists derive the concept of consumer surplus imposing some assumptions on the consumer’s preferences and on its behaviour when choosing the allocation of limited resources.
- If the actual market price of potato chips is $2.50, and steve buys five bags as shown, what is the value of his consumer surplus?A) If the price of a canister of maple syrup is $35, how many canisters will Joe Mapleworth purchase & what is Joe Mapleworth's consumer surplus at $35? B) If the price of a canister of maple syrup drops to $25, how many canisters will Joe Mapleworth purchase & what is Joe Mapleworth's consumer surplus at $25? C) If the price of a canister of maple syrup drops to $15, how many canisters will Joe Mapleworth purchase & what is Joe Mapleworth's consumer surplus at $15?Monique would be willing to pay as much as $15 for an order of pasta at Gialina’s Italian restaurant. Monique is pleasantly surprised to find out that the price of the pasta is only $10. Gialina would be willing to sell that pasta for as little as $7, but is actually able to price it at $10 because that’s the market equilibrium price for pasta. Given this information, Monique’s consumer surplus is ____________ and Gialina’s producer surplus is ___________. Select one: a. $8; $3 b. $15; $7 c. $5; $3 d. $5; $8
- Suppose broccoli and Velveeta are complements in consumption. Suppose further that the supply of broccoli is increasing. Everything else held constant, consumer surplus in the Velveeta market will _____ and economic surplus in the Velveeta market will _____.Suppose that a consumer perceives X and AOG (all other goods) to be perfect (one-for-one) substitutes. The consumer has an income of $100 and the price of x is 80 cents. If the price of x rises to 1.20, what is the resulting change in consumer surplus? Show work and explain04. The maximum that buyers are willing to pay for the 8-th unit of this product is (a) $4 (b) $12 (c) $18 (d) $22 (e) $24 05. The minimum that suppliers will accept for the twentieth unit of this product is (a) $2 (b) $8 (c) $12 (d) $18 (e) $22 06. Assuming that this market is at equilibrium, what is the "consumer's surplus" and producer's surplus? (a) consumer's surplus is $72; producer's surplus is $36 (b) consumer's surplus is $98; producer's surplus is $49 (c) consumer's surplus is $32; producer's surplus is $16 (d) consumer's surplus is $36; producer's surplus is $72 (e) consumer's surplus is $144; producer's surplus is $14