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- Ryan would be willing to pay $1 for a lollipop. Sarah would be willing to pay $0.50. The price of the lollipop is $0.75. What is Ryan and Sarah's combined consumer surplus? a. $0 b. $0.25 c. $0.50 d. $0.75 Can someone please explain to me why the correct answer here is $0.25? I did the calculations and i keep getting $0 the follwing is my calculationsIsabelle values her time at $60 an hour. She spends2 hours giving Jayla a massage. Jayla was willingto pay as much as $300 for the massage, but theynegotiated a price of $200. In this transaction,a. consumer surplus is $20 larger than producersurplus.b. consumer surplus is $40 larger than producersurplus.c. producer surplus is $20 larger than consumersurplus.d. producer surplus is $40 larger than consumersurplus.The figure below shows the situation of a market. What is the equailibrim price and answer the consumer surplus and producer surplus at the equilibrium price.
- How to solve economic surplus tableConsidermarketforagoodcharacterizedbythefollowinginverse demand and supply functions: PX = 10 − 2QX and PX = 2 + 2QX.a. Compute the surplus received by consumers and producers.b. Now suppose all manufacturers of this good are to pay a lump tax of $0.10that will be used by the government regulators to defray some of the environmental cost imposed by this good’s production. What will be the new surplus received by consumers and producers?c. Based on your results in part ‘b’ above, how will you evaluate the impact of this tax policy on the society? ExplainCorrectly illustrate a supply and demand curve. Pay close attention to the price controls. a) Wisconsin has a salmon market which sells salmon at $15/lb. At that price, 100,000 lbs. of salmon will be consumed in one week. Suppose the state of Wisconsin were to set a quantity control of 50,000 lbs. of salmon per week. Show: P and Q using correct labeling Changes in producer surplus and consumer surplus Deadweight loss Analysis Explain why this market is allocatively inefficient.
- Give proper Explanation of the answer Cathy is willing to pay$40for a subway and Aby is willing to pary only$35. The price of the subway is$30. Suppose Cathy manages to buy the last subway. However, for some teason, the restaurant decides to take the newly bought subway from Cathy, refund Cathy the price he paid and let Ally buy the subway at$30. a. the sum of consumer surplus and producer surplus increases. b. the producer surplus increases ic the consumer sieplus decreasets d. the consumer vurolus increases e. the produghr surplus decreases Clear my choiceExplain the social efficiency by taking into account consumer surplus and producer surplus.Carrie is willing to pay $1400 for the new Samsung Galaxy phone. Samsung is selling the new Galaxy phone for $1200. It costs Samsung $600 to produce this phone. The total economic surplus if Carrie purchases this phone is $________. Im not sure which one is right one individual said onsumer surplus = 1/2(willing to pay - selling price ) *quantity CS = 1/2 ( 1400 - 1200) *1 CS = 100 Producer surplus = 1/2( selling price - willing to receive)*quantity PS = 1/2 ( 1200-600)*1 PS =300 total economic surplus = PS +CS = 400 and another said According to the given information, total economic surplus would be: =12×Maximum willingness to pay-Minimum Willingness to accept×quantity sold=12×$1400-$600×1=$400=$800
- Sophie pays Sky $50 to mow her lawn every week.When the government levies a mowing tax of $10 onSky, he raises his price to $60. Sophie continues tohire him at the higher price. What is the change inproducer surplus, change in consumer surplus, anddeadweight loss?a. $0, $0, $10b. $0, −$10, $0c. 1$10, −$10, $10d. 1$10, −$10, $0Suppose that the demand for a concert is represented by the following equation, where P is the price of concert tickets and QD is the quantity of tickets demanded:QD = 2200 - 24PThe supply of tickets is represented by the equation where P is the price of the tickets and QS is the quantity of tickets supplied:QS = -500 +79PGive all answers to two decimals. 1. Find the equilibrium price and quantity of tickets sold. 2. Calculate the consumer surplus and producer surplus at the equilibrium price and quantity. Use the formula for the area of a triangle, (½ × base × height), to calculate each value.Write down a model of positive production externality with two firms, in which theproduction activities of one firm directly affects the production/cost of the other firm.State and explain the key assumptions of the model. Using the model, answer thefollowing questions:(a) Explain why the presence of a positive production externality could prevent therealisation of an efficient outcome.(b) Name a possible cure for the positive production externality and explain how itcould solve the inefficiency problem.