A "Spider-man" DVD is worth $30 to Marcus. But he buys one on sale for just $15. What is the consumer surplus that results from Marcus's purchase? $10 $25
Q: The difference between consumer surplus and producer surplus
A: Economics, as a subject, deals with the allocation of scarce resources among humans with unlimited…
Q: Harry pays only $15 000 to purchase a new car that he would have been willing to pay as much as $25…
A: In a market, an individual will gain se surplus if he is able to get a specific unit of a product at…
Q: What is the consumer surplus? A) $40 million B)$50 million C)$60 million d)$70 million
A: Actual market price =$ 75 Consumer willings to pay= $125
Q: The quantity that maximise total surplus (the sum of consumer and producer surplus) is__? Because…
A:
Q: Based on this graph, Calculate producer surplus from 500 pairs of shoes.
A: In the free market, equilibrium point is determined by the forces of demand and supply. In the above…
Q: For each scenario, decide whether it results in a producer or consumer surplus. Then calculate the…
A: here we calculate the resulting surplus.
Q: When quantity supplied and quantity demanded are equal, consumer surplus is equal to
A: Consumer surplus is computed as the difference between the maximum price that a potential consumer…
Q: The equilibrium price in the market for jet skis is $5,500. In the Candlewood Lake area, there are…
A: Producer surplus is difference between the actual price reducer receives and minimum price producer…
Q: If the price of the good in the market below increases from $1.50 to $2.50, what is the change in…
A: Consumer surplus is the area above the price line and under the demand curve. At the price of…
Q: The demand curve for cookies is downward sloping. When the price of cookies is $3.00, the quantity…
A: Answer: Introduction: Consumer surplus: it refers to the benefit received by the consumer when he…
Q: Jennifer buys a plece of costume Jewelry for S30, for which she was willing to pay $42. The minimum…
A: Consumer surplus demonstrates the amount of welfare realized by market consumers from purchasing a…
Q: When a market is in equilibrium, the total amount of consumer surplus must be the total amount of…
A: Consumer surplus is the difference between the maximum price a consumer is willing to pay and the…
Q: Define Consumer and Producer Surplus and illustrate them graphically.
A: Consumer Surplus: The difference between the amount that the consumer is willing to pay and the…
Q: Find consumer surplus is total surplus is $55 and producer surplus is $30
A: The data presented in the question above is:- Total surplus = $55 Producer surplus = $30 Consumer…
Q: John buys a T-shirt for $100 and his consumer surplus is $0. What is John’s maximum willingness to…
A: Consumer surplus is the price consumer is willing to pay minus the price that is actually paid. In…
Q: Amrin goes to Sportsmart to buy a new tennis racquet. He is willing to pay $200 for a new racquet,…
A:
Q: Calculate the producer surplus and consumer surplus at equilibrium price. Give mathematical…
A: Consumer Surplus( CS): Is a difference between what consumer is willing to pay and what does he…
Q: A surplus occurs when: more people want to buy a good than want to sell it.
A: Surplus can be depicted through following graph - Here, at price level equal to p1 . quantity…
Q: If demand is P = 80 - 2Q and supply is P = 20 + 3Q, what is the value of the Consumer Surplus? Enter…
A: Demand curve is a downward-sloping curve showing a negative-relationship between the price and…
Q: Consumer surplus exists when A) consumers value the good more highly than what they must pay to buy…
A: Marginal benefit is the demand curve. It is equal to price at equilibrium. Marginal cost is the…
Q: PRICE (Dollars per phone) 150 135 120 105 90 75 60 45 30 15 0 Demand Supply 80 100 120 140 160 180…
A: "Demand curve indicates a negative relationship between price of the product and quantity demanded…
Q: The table below represents the market for DVDS. Quantity of DVDS Demanded (Millions) Price Quantity…
A: Price ($) QD of DVD's QS of DVD's Consumer surplus 2 30 0 3 25 10 4 20 20 5 15 30…
Q: Fred's Famous Franks raises the price of their hot dogs from $4, where they sold 500 hot dogs, to…
A: Fall in Consumer surplus =area of triangle + area of rectangle = 0.5 * (5-4) * (500-400) + (5-4)…
Q: Jennifer buys a plece of costume Jewelry for $30, for which she was willing to pay $42. The minimum…
A: consumer surplus: The term "consumer surplus" refers to an economic assessment of consumer…
Q: Megan buys an iPhone for $240 and gets a consumer surplus of $160. Her willingness to pay for an…
A: Consumer surplus occurs when the price paid by the buyers is less than what the buyer is willing to…
Q: Carrie is willing to pay $1400 for the new Samsung Galaxy phone. Samsung is selling the new Galaxy…
A: Economic surplus is the surplus earned by consumers and producers in the economy. ECONOMIC SURPLUS =…
Q: Assume that the actual price of the tv is 20% lower than what you are willing to pay. Consumer…
A: As it is already mentioned in the question, consumer surplus is the difference between what the…
Q: d'Artagnan, Athos, Porthos, and Aramis are good friends and passionate readers of modern fiction.…
A: "Total consumer surplus is obtained by adding consumer surplus of each individual and each…
Q: Quantity Demanded (units) Price (dollars per unit) 250 200 40 150 80 100 120 50 160 200 Refer to the…
A: A consumer surplus occurs when customers pay less for a commodity or service than they are willing…
Q: If demand is P - 80 - 2Q and supply is P = 20 +3Q, what is the value of the Consumer Surplus? Enter…
A: The demand function shows the relationship between quantity demanded and price. The demand curve is…
Q: Why does producer surplus arise? Consumers buy less of some commodities than they need. Sellers'…
A: Consumer and producer surplus are generated when goods and services are exchanged between buyers and…
Q: Chin purchases five protein bars at a price of $3 each. The marginal benefit he receives from each…
A: Consumer Surplus (CS) is an economic measure of the welfare of an individual buying a particular…
Q: surplus is the difference between the maximum price a consumer is (or consumers are) willing to pay…
A: Producer surplus: It is the difference of the potential price that a producer wished to sell and the…
Q: Use the black point (plus symbol) to indicate the equilibrium price and quantity of smartphones.…
A: equilibrium is achieved in the market at the output level where Qs=Qd thus required equilibrium…
Q: Carrie is willing to pay $1400 for the new Samsung Galaxy phone. Samsung is selling the new Galaxy…
A: Summation of consumer surplus and producer surplus is called total economic surplus. maximum price…
Q: Betty is willing to pay up to $150 for a particular pair of boots. She is able to buy the boots for…
A: Answer: Introduction: Economic surplus: it refers to the sum of consumer surplus and producer…
Q: The rent on an apartment in a particular building near campus is $1,200 per month. If Min would be…
A: Consumer surplus is the difference between market price and maximun price consumers are willing to…
Q: If total surplus is $200 and consumer surplus is $90 Find producer surplus
A: The data presented in the question above is:- Total surplus = $200 Consumer surplus = $90 We need to…
Q: Discuss real world examples of Consumer and Producer Surplus ?
A: Consumer surplus:The Consumer surplus is the gap between the Equilibrium Price and the price that…
Q: Neha buys an iPhone for $240 and gets a consumer surplus of $160. Her willingness to pay for an…
A: Consumer surplus is the difference between willingness to pay by the consumer for a good and the…
Q: Naisa buys an iPhone for $240 and gets consumer surplus of $160. a. What is her willingness to pay?…
A: Demand is the willingness and ability of consumers for consuming and buying goods and services at…
Q: Myra buys an iPhone for $280 and gets consumer surplus of $120. (a) What is her willingness to pay?…
A: Answer to the question is as follows;
Q: You own a company that produces coasters. You set the price at $10 for a set of six coasters. Then…
A: Market equilibrium is achieved at the price where the quantity demanded and quantity supplied…
Q: Who gets the benefit when there is surplus of goods in the market household consumers government…
A: Both demand and supply are necessary to run a market. The market can not run properly if any one of…
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- 1. Mzanzi-Ndizvo (Pty) is a vaccine manufacturing company that has the following costs ofproduction. Cost of capital is R50 000, labour cost is R30 000, and the total cost the firm is willing to pay is R300,000. Identify the type of this production function and Illustrate it with a 2D graph. 2. If the demand and supply curve for cell phones is given by: D = 80 - 4P, S = 40 + 6P In a market with a price of P for smartphones, compute the number of phones that would be bought and sold at equilibrium.It costs $250 to produce an X-Box. We are trying todetermine the selling price for the X-Box. Prices between$200 and $400 are under consideration, with demand forprices of $200, $250, $350, and $400 given below. SupposeMSFT earns $10 in profit for each game that an X-Boxowner purchases. Determine the optimal price andassociated profit for the case in which an average X-Boxowner buys 10 games. Console Price ($) Demand200 2.00E06250 1.20E06350 6.00E05400 2.00E05Unit cost $250No written by hand solution Suppose that headphones can be produced at a constant marginal cost. Headphone A is priced at $20 and headphone B is priced at $30. (a) If the Lerner index of headphone A divided by the Lerner index of headphone B is 0.5, what is the marginal cost of producing headphones? (b) Using your answer to part ‘a’, what is the elasticity of demand of headphone A? What is the elasticity of demand of headphone B?
- For problems 1 – 4: The Dolan Corporation, a maker of small engines, determines that in 2019 the demand curve for its product is P = 2,000 - 50Q where P is the price (in dollars) of an engine and Q is the number of engines sold per month. If managers set a price of $750, how many engines will Dolan sell per month? a.30 b.35 c. 20 d.25Q:1 Calculate the market Price/output equillibrium. Graph where equlibrium point, CS and PS is Q:2 Calculate the new Price/output equlibrium, the new CS, PS. Is there dead Weight loss?c) Assume that the market price for bagel services is 42 and store produces 30 units of the bagel. Calculate theprofit level. Is the store profit maximizing? Explain your answer. d) Go back to part c) and assume that there are 100 identical bagel store in the market. Determine the market supply curve. (You will obtain total market quantity, Q, as a function of price,P). Are elasticities of individual firm supply and market supply curves different? e) Given the market supply curve you have calculated in part d), now assume that market demand forhairdressers are given by Q=2900-50P. Find the equilibrium price and quantity in the market. Does the marketequilibrium correspond to long-run equilibrium? Explain
- 2. The supply Qs = s(P, Pm) has the functional form of: Qs = -12 + 0.5P - 2Pm initially, the materials cost Pm_0 = 7. Find the optimal quantity to supply if the price is P=76 and P=80. At P=76, Q_0 = . At P=80, Q_0 = . 3. Now, the cost of materials changes to Pm_1 = 9. Find the optimal quantity to supply if the price is P=76 and P=80. At P=76, Q_1 = At P=80, Q_1 = Draw the second supply curve and show how supply shifted.A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company's anticipated demand over the lifetime of the bridge: Price Quantity (Dollars per crossing) (Thousands of crossings) 8 0 7 100 6 200 5 300 4 400 3 500 2 600 1 700 0 800 If the company were to build the bridge, its profit-maximizing price would be $ ? , and it ( would or would not)? produce the efficient level of output. If the company is interested in maximizing profit, it (should , or should not)? build the bridge because profit would be . (Note: If the company incurs a loss, be sure to enter a negative number for profit.) If the government were to build the bridge, it should charge a price of $ ? True or False: The government should build the bridge. True or FalseContinuing your analysis of the competitive US manufacturing industry from Question 1, withdemand of Qd = 500 – 8P and supply of Qs = 4P – 100, suppose a technological innovationcauses the supply curve to increase, shifting the curve down by $15 for every given quantity Q. Determine the new supply equation. Solve for equilibrium price P2 and quantity Q2. Depict the original supply S1, the new supply S2, and the original demand D1 on theusual P, Q diagram. Label all intercepts (including two intercepts for the demand curveand one intercept for the supply curve). Clearly indicate and label the new marketequilibrium. Graphically indicate the areas of Consumer Surplus (CS2) and Producer Surplus (PS2)that resulted from the new market equilibrium. Compute the values of Consumer Surplus (CS2) and Producer Surplus (PS2) associatedwith the new market equilibrium, clearly indicating the units that CS and PS aremeasured in. Who has benefited from technological innovation, based on the…
- A toy manufacturer makes miniature trucks. The pricep(in dollar) and the demandx(numberof miniature trucks) are related by the equation 6000−600p=x. The total cost for the sametoy manufacturer to producexminiature trucks can be modeled byC(x) = 8x+ 450.(a) (10 points) Express the pricepin terms of the demandx. Find the revenueR(x) if themanufacturer sellsxminiature trucks in a month and find the domain of this function.(b) (10 points) Graph the cost and revenue functions on the same coordinate system for 0≤x≤6000.(c) (10 points) What is the minimum number of trucks the toy manufacturer must sell tobreak even?(d) (10 points) FindP′(300) and interpret the result.(e) (10 points) What is the exact profit from the sale of the 301stminiature truck?Refer to the accompanying figure. When this market is in equilibrium, total producer surplus in the market is Price ($/restaurant meal) 60 50 40 30 20 10 O 0 S D 5 10 15 20 25 30 35 40 45 50 Quantity (restaurant meals/day) per day. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.A hair salon has very loyal customers and faces a weekly demand for blowouts equal to qD = 1,040 – 20P.The salon has weekly total cost of TC(q)=0.05q2+20q+500. g) The hair Salon instead has market power. Suppos the firm charges all customers the same price for a blowout. Find the profit maximizing level ofoutput (q*) and price (p*).h) Compute the price elasticity of demand at q* and show that at q* MR(q*) = p*(1+1/e) = MC(q*)i) Compute the consumer surplus created by the Salon and the profit of the firm.
