Q: 1. Here is the demand for coconuts: P 3 4 5 6…
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Q: elissa buys an iPod for $120 and gets consumer surplus of $80. a. What is her willingness to pay?…
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Q: Assume that the actual price of the tv is 20% lower than what you are willing to pay. Consumer…
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Q: Question 1. Melissa buys an iPhone for $120 and gets consumer surplus of $80. a) What is her…
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Q: P S 15 10 I 5 10
A: the producer surplus on the other hand is defiend as the difference between the minimum amount which…
Q: 5. Using the graph above, suppose a price floor of $14.00 is imposed. As a result, total surplus…
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Q: 1. Consider a market where the demand is given by QD = 120 -P and supply is given by QS =÷P. What…
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Q: 2) Explain the difference between a subsidy and a tax.
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Q: equilibrium price, quantity, consumer and producer surplus
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- using the graph answer the following questions" 27. what is the size of consumer surplus when price floor of $9 is imposed 28. what is the size of producer surplus when price floor of $9 is imposed 29 what is the size of social surplus when price floor of $9 is imposedDraw a supply and demand graph and identify the areas of consumer surplus and producer surplus. Given the demand curve, what impact will an increase in supply have on the amount of consumer surplus shown in your diagram? Explain why.Question 1 The table below shows the marginal costs of the last croissant produced by four different bakeries. Assume that any bakery willing to sell croissants at the market price sells 100 croissants and that all bakeries have the same costs. How much producer surplus is earned in this market at a price of $3.00 Question 1 options: a) $100 b) $0 c) $1 d) $75 e) $200 Question 2 Use the graph below to answer the following question: What happens to consumer surplus if the price decreases from $8 to $5? Question 2 options: a) It increases by $18 b) It increases by $3 c) It increases by $21 d) It remains constant at $25 e) It…
- Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay for a good or service. ... The producer surplus is the difference between the actual price of a good or service–the market price–and the lowest price a producer would be willing to accept for a good. Given the following information, calculate both the producer and consumer surplus a. P- 140 = - .5q b. MC = 10 + 4q show all working and draw graphWhat is the term used to describe the situation where resources are allocated in a way that maximizes total surplus? A. Pareto efficiency B. Market equilibrium C. Social welfare D. Deadweight lossIn a supply-demand diagram, a real estate market rent control regulation keeps the rent for 1 bedroom apartments below the market price. What consumer surplus is gained by consumers that is also producer surplus lost by producers? What consumer surplus is lost by consumers that is not gained by producers? What producer surplus is lost by producers that is not gained by consumers?
- Using a graph showing the concepts of producer and consumer surplus, discuss the argument ‘it would have been more efficient if supermarkets had increased the price of toilet paper in early 2020.’ Would raising the price of toilet paper have been unfair?Both a home buyer (A) and seller (B) of a house agree on a price of 2.5 million dollars. A values the house at 3 million dollars and B values the house at 2 million dollars. Before the date of delivery of the keys, C offers to buy this house from B for 3 million dollars because C values the house at 4 million. (a) Assuming transaction costs are zero (0), fully explain what actions A, B, and C will take and how social surplus will be distributed among them if A has the remedy of expectation damages against B. (b) Assuming transaction costs are zero (0), fully explain what actions A, B, and C will take and how social surplus will be distributed among them if A has the remedy of specific performance against B. (c) Assuming transaction costs are zero (0), fully explain what actions A, B, and C will take and how social surplus will be distributed among them if A has no remedy against B. (d) How high can transaction costs be before it matters which remedy A has?Beginning with the initial equilibrium, suppose the government sets the price of a pound of almonds at $14. On a graph, identify consumer surplus, producer surplus, and the deadweight loss.
- Use the ideas of consumer surplus and producer surplus to explain why economists say competitive markets are effificient. Why are below- or above-equilibrium levels of output ineffificient, according to these two sets of ideas?Suppose that the government imposes a tax on cigarettes, use the diagram below to answer the questions. D is the demand curve before tax, S is the supply curve before tax and ST is the supply curve after the tax. (a) Calculate the consumer surplus before the tax. (b) calculate the producer surplus before the tax.Discuss how the equilibrium price and quantity change when a change in demand occurs and the supply stays constant, and when a change in supply occurs and the demand stays constant. How do price controls affect the market? Provide a real-world example that takes consumer surplus and producer surplus into consideration.
