Alice, Amber, and Andi make and sell pottery. Alice is willing to sell a 5 inch pot for $20, Amber is willing to sell a 5 inch pot for $22, and Andi is willing to sell a 5 inch pot for $46. If each of the ladies is able to sell one 5 inch pot for $50, what is their combined producer surplus? combined producer surplus: $ If the price of a 5 inch pot is $30, which of the ladies will sell their pots? Andi only Alice only Alice, Amber, and Andi Alice and Amber
Q: The market for tomatoes is in equilibrium at the price of $10, and quantity of 50 tomatoes. If…
A: Consumer surplus is the difference between the a consumer's willingness price and what he actually…
Q: Identify whether each of the following statements best illustrates the concept of consumer surplus,…
A: Consumer Surplus refers to an economic measurement of consumer benefits. A consumer surplus occurs…
Q: Monique would be willing to pay as much as $15 for an order of pasta at Gialina’s Italian…
A: Consumer surplus is the difference between price consumers are willing to pay and market price.…
Q: Suppose that the market price for pizzas increases. The increase in producer surplus comes from the…
A: The producer surplus is the amount in excess of what the minimum the producers are willing to…
Q: incoln offers to do Katelyn's housework for $80 per week. Katelyn's opportunity cost of doing…
A: Opportunity cost is the benefits of next best alternate that is sacrificed.
Q: USE TABLE #1: Now, assume the market for electric automobiles is an efficient market. The producer…
A: Efficient quantity is 240 units and price is 80,000$
Q: The graph shown demonstrates a subsidy on buyers. With the subsidy, the producers sell units and…
A: Given diagram Before and after subsidy on the buyer
Q: Region A (the purple shaded area) represents the total producer surplus when the market price is $…
A: Meaning of Producer Behavior: The term producer behavior refers to the situation under which a…
Q: From the previous graph, you can tell that Sam is willing to supply his 4th slice of cheesecake for…
A: A market is a place where buyers and sellers meet. Perfect competition market is a place where there…
Q: There are six potential consumers of computer games, each willing to buy only one game. Consumer 1…
A: Consumer surplus is the difference between consumers willingness to pay and what he actually pays…
Q: From the previous graph, you can tell that Kenji is willing to pay for his 8th slice of apple pie…
A: Consumer surplus is the difference between what a consumer is willing to pay for consumption of a…
Q: The table Consumer Surplus and Phantom Tickets shows each student's willingness to pay for a Phantom…
A: A consumer will buy a product only when its marginal willingness to pay for that product is greater…
Q: what do you understand by consumer and prducer surplus ?what is the impact of price decrease on…
A: In a perfectly competitive market at the point of equilibrium, the combined consumers surplus and…
Q: The following graph shows the supply curve for a group of sellers in the U.S. market for smartphones…
A: The market price for Smartphone is given to be $175 and there are 5 sellers in the market. The given…
Q: Say the price of a cowboy hat is $100 . Willie can produce a cowboy hat at a marginal cost of $130,…
A: Producer surplus is the total amount that a producer gains from producing and selling goods and…
Q: Sefronia and Bella share an apartment and they are deciding whether or not to purchase a weekly…
A: Consumer surplus: The consumer surplus means the consumer is willing and able to pay for the goods…
Q: Select the correct answer below: Producer surplus is the benefit producers receive for selling goods…
A: Producer surplus is equal to the revenue received by the producer less its variable cost incurred on…
Q: i dont know where the boxes go or the price mark. the cosumer surplus too.
A: Figure 1 shows the producer’s surplus area.
Q: Suppose the demand for Pan de Sal rises. What happens to producer surplus in the market for Pan de…
A: Answer - Producer surplus in both the market will increase.
Q: Each rectangle you can place on the following graph corresponds to a particular buyer in this…
A:
Q: The following graph shows the weekly market demand for cheesecake in a small economy. Use the purple…
A: The difference between the price a customer pays for an item and the price he would be willing to…
Q: Suppose you are moving across town. Doing your research you find that the average rate of a moving…
A: The consumer surplus is the difference between the price that the consumer is willing to offer for…
Q: Determine whether the following statements is true or false, and explain why. The consumers’ surplus…
A: Determine whether the following statements is true or false, and explain why. The consumers’ surplus…
Q: Answer the following questions based on the graph that represents Kyle's demand for ribs per week at…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Identify whether each of the following statements best illustrates the concept of consumer surplus,…
A: Demand: - Demand is the relationship between the quantity demanded and the price of a good. There is…
Q: Refer to the Figure below. Suppose the market price of a laptop is $600, and 3,000 laptops are sold…
A: Meaning of Producer Behavior: The term producer behavior refers to the situation under which a…
Q: shopping center nearby, you saw an organic grocery store that barely sells any goods in a day. You…
A: In the long run, highly competitive markets do not enjoy economic benefits. The presence of economic…
Q: The graph shows the schedule for hours of tutoring in economics. Price (per hour of tutoring) $254…
A: Customer surplus generally diminishes while a binding value floor is instituted in a market over the…
Q: Suppose the daily demand curve for gasoline is as provided in the accompanying graph. a. Calculate…
A: Consumer surplus is the difference between the maximum willingness to pay and the actual price paid…
Q: From the previous graph, you can tell that Eric is willing to supply his 8th slice of pizza for each…
A: Eric’s weekly supply curve is given as below. Producer surplus is represented by the Yellow shad…
Q: which statements are true Harold is willing to pay $25 and Maude is willing to pay $18 for a steak…
A: Note:- Since we can only answer up to three subparts, we'll answer first three. Please repost the…
Q: If you sold 500 pounds of beef for $5 per pound when you usually sell it for $2 per pound. What is…
A: you sold 500 pounds of beef for $5 per pound when you usually sell it for $2 per pound. What is your…
Q: The following graph shows the supply curve for a group of sellers in the U.S. market for tablets…
A: The distinction between a lot of what proportion what amount someone would settle for for a given…
Q: Producer surplus for an individual and a market Suppose the market for apple pie is a perfectly…
A: The producer surplus is the difference between the market cost and the least cost a producer is…
Q: I need help with questions 9 and 10.
A: Question 9: Price ceiling refers to the price restriction set by the government under which the…
Q: USE TABLE #1: The calculation you used to find the consumer surplus for the efficient market for…
A: We have given the demand and supply schedule of electronic automobile. And the data reflected that…
Q: Identify whether each of the following statements best illustrates the concept of consumer surplus,…
A: Producer surplus refer to the difference between the minimum acceptance price of the producer and…
Q: The following diagram shows supply and demand in the market for smartphones. Use the black point…
A: Given the demand and supply of smartphones, equilibrium is achieved at the intersection of these two…
Q: 6 . Consumer Surplus Ana buys an iPhone for $150 and gets a consumer surplus of $200. Her…
A: Answer to the question is as follows:
Q: Jen values her time at $60 an hour. She spends 2 hours giving Colleen a massage.Colleen was willing…
A: The consumer surplus is the benefit to consumers by participating in the market, which is the…
Q: If producers are willing to sell 20 cans of soda at a total price of 10 and a local restaurant…
A: Given information: Producers are willing to sell 20 cans of soda at a total price of 10, and a local…
Q: Use the graph below to find the value of consumer surplus and producer surplus. $15.00 S $5.00 200…
A: Consumer surplus is the area above the equilibrium price and below the demand curve. Area of…
Q: When does a producer surplus occur? a. when individuals pay less than the maximum amount they would…
A: When a market transaction takes place, consumers get consumer surplus and producers get producer…
Q: will sell smartphones at the given market price, and total Based on the information on the preceding…
A: The measure that depicts the difference between the price in the market and the lowest price being…
Q: Identify whether each of the following statements best illustrates the concept of consumer surplus,…
A: Consumer surplus is an economic measure of consumer benefit which is received from the purchase of a…
Q: explain all of the following concepts: a- Producer surplus b- Cobweb model c- Discriminating
A: Producer surplus: Producer surplus is the difference between what the seller gets for the good and…
Q: The market for tomatoes is in equilibrium at the price of $10, and quantity of 50 tomatoes. If…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: he following diagram shows supply and demand in the market for smartphones. Use the black point…
A: ‘Equilibrium’ refers to the situation where quantity(Q) demanded equals quantity(Q) supplied. The…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Statement Consumer Surplus Producer Surplus Neither I sold a used laptop for $140 on eBay last week. This week, someone offered me $30 for it. Even though I was willing to pay up to $47 for a used textbook, I bought a used textbook for only $42. I sold a jersey sweater for $35, even though I was willing to go as low as $25 in order to sell it.which statements are true Harold is willing to pay $25 and Maude is willing to pay $18 for a steak dinner at a fine restaurant. When the price of the steak dinner increases from $15 to $18, Harold experiences a decrease in consumer surplus, but Maude does not. Assume that at the equilibrium price, consumer surplus is $100 and producer surplus is $60. At equilibrium, total surplus is $40. Assume there are only three sellers in a particular market. The cost of production for Annie is $50, for Beth it is $40 and for Cathy it is $35. If the price in the market is $45 then Annie will sell the product but Beth and Cathy will not sell. Price ceilings and price floors usually reduce the welfare of society because quantity demanded does not equal quantity supplied if the price control is binding. Suppose that at the equilibrium price of $50, the equilibrium quantity is 400 units and consumer surplus is $8,000. If the equilibrium price falls to $40 and the equilibrium quantity increased to 450…Scenario 8-2 Lincoln offers to do Katelyn's housework for $80 per week. Katelyn's opportunity cost of doing housework is $100 per week, and Lincoln's opportunity cost of doing housework is $50 per week. 16. Refer to Scenario 8-2. What will be Lincoln's gain in producer surplus as a result of the proposed transaction? a. Lincoln will gain $20 per week. b. Lincoln will gain $30 per week. c. Lincoln will gain $40 per week. d. Lincoln will gain $50 per week.
- Say the price of a cowboy hat is $100 . Willie can produce a cowboy hat at a marginal cost of $130, Waylon can produce them at a marginal cost of $100, and Merle can produce the hats at a marginal cost of $85. Of the following statements, which is true? Question 5 options: The sum of producer surplus is $15. The sum of producer surplus is $45. All three of these sellers will gain producer surplus from selling a hat. The sum of producer surplus is $30. Willie's producer surplus is $30.Ernie owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water: Bottle of water Cost Cost of 1st bottle $1 Cost of 2nd bottle $3 Cost of 3rd bottle $5 Cost of 4th bottle $7 If the price rises to $6, how does quantity supplied change? How does Ernie’s producer surplus change? Show these changes in your graph.Use the following diagram to calculate total consumer surplus at a price of $12 and production of 500 thousand flu vaccinations per day. for the same equilibrium, calculate total producer surplus. Assuming price remained at $12 but production was cut to 200 thousand vaccinations per day, calculate producer surplus and consumer surplus. Calculate the deadweight loss from underproduction.
- Refer to the figure below. What is the consumer surplus generated at a price of $150 per game console? Instructions: Use the tool provided “CS” to illustrate this area on the graph. Consumer surplus: $ ____ What is the producer surplus generated at a price of $150 per game console? Instructions: Use the tool provided “PS” to illustrate this area on the graph. Producer surplus: $ ____ e. What is total economic surplus at a price of $150 per game console? Economic surplus: $ _____ f. What is the economic surplus generated if the market were in equilibrium? Instructions: Use the tool provided “ESeq” to illustrate this area on the graph. Economic surplus in equilibrium: $ ______You are planning a move across town. Doing your research you find that the average rate of a moving company is $250 per hour for two movers (moving truck included). The marginal benefit you receive from each hour of the two movers’ time (and truck) is listed in the accompanying table. Hours of movers’ time Marginal benefit 1 hour $850 2 hours $620 3 hours $500 4 hours $250 5 hours $150 6 hours $100 7 hours $0 For how many hours should you hire the movers? How much consumer surplus do you receive? Now suppose that instead of paying per hour, a moving company offers a flat rate of $1,500 for two movers plus a truck for an eight-hour day. Would you hire the movers? How has your consumer surplus changed?which statement is correct Moving production from a high-cost producer to a low-cost producer will decrease total surplus. Suppose the United States changed its laws to allow for the legal sale of a kidney and the government allowed a free market in organs for transplant then there would be a decrease in the price of a kidney and an increase in the shortage of kidneys for transplant. Total surplus in the market is the summation of consumer surplus and producer surplus and it is maximized at the market equilibrium in the absence of market power and externalities. If a good is not being produced by sellers with the lowest cost, then the market reflects inefficiency in the allocation of resources. Welfare economics deals with how the allocation of resources affects economic well-being. The willingness to pay is a measure of how much the buyer values the good. The marginal seller is the seller who would leave the market first if the price were any higher.
- What is the producer surplus? What is the worker surplus? Show that a competitive market equilibrium maximizes the gains from trade.Suppose the demand for Pan de Sal rises. What happens to producer surplus in the market for Pan de Sal? What happens to producer surplus in the market for flour? Illustrate your answer with diagrams.The accompanying diagram illustrates a taxi driver’s individual supply curve (assume that each taxi ride is the same distance). a. Suppose the city sets the price of taxi rides at $4 per ride, and at $4 the taxi driver is able to sell as many taxi rides as he desires. What is this taxi driver’s producer surplus? (Recall that the area of a right triangle is ½ × the height of the triangle × the base of the triangle.) b. Suppose that the city keeps the price of a taxi ride set at $4, but it decides to charge taxi drivers a “licensing fee.” What is the maximum licensing fee the city could extract from this taxi driver? c. Suppose that the city allowed the price of taxi rides to increase to $8 per ride. Again assume that, at this price, the taxi driver sells as many rides as he is willing to offer. How much producer surplus does an individual taxi driver now get? What is the maximum licensing fee the city could charge this taxi driver?