Amazon has a "Lightning Deal" where it slashes the price of one item. At 3:15 p.m. today, they announced that the item was a new tablet with a sales price of $150 which is less than half the original price. The table contains the maximum willingness to pay of five college students wanting to buy a tablet on Amazon. Willingness to pay $500 $400 $300 $200 $100 Student Anthony Amanda Lily Francisco Max What is total consumer surplus for the five students? If the price increases from $150 to $350, what is the change in total consumer surplus? $

Amazon has a "Lightning Deal" where it slashes the price of one item. At 3:15 p.m. today, they announced that the item was a new tablet with a sales price of $150 which is less than half the original price. The table contains the maximum willingness to pay of five college students wanting to buy a tablet on Amazon. Willingness to pay $500 $400 $300 $200 $100 Student Anthony Amanda Lily Francisco Max What is total consumer surplus for the five students? If the price increases from $150 to $350, what is the change in total consumer surplus? $

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

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Kayla and Kevin are friends who go together to a used textbook seller who has two copies ofthe biology book that they both need for their class this semester. The cost to the seller ofacquiring the books was $25 each and no other students will need this book. Kayla states thatshe is willing to pay $40 for the book, while Kevin says he is willing to pay $80. Which ofthe following describes the most likely conclusion to this scenario? Group of answer choices The seller will sell the books to both Kayla and Kevin for $40 each because if they tried tocharge Kevin a higher price, Kayla would engage in arbitrage. The seller will sell one book to Kayla for $40 and one book to Kevin for $80 because thismarket meets all three requirements for price discrimination. The seller will sell the books to both Kayla and Kevin for $80 each because Kevin's highervalue exceeds Kayla's willingness to pay. The seller will sell the books to both Kayla and Kevin for $25 each because that is howmuch the…
. When Chinese automakers began exporting cars, rather thanfocusing on developed nations in the West, they shippedautos to emerging markets in countries such as Algeria, Russia,Chile, and South Africa. In these markets, even used vehiclesfrom multinational manufacturers are relatively scarce—andrelatively expensive. The Chinese automakers, who prioritizelow cost rather than design or even safety, applied a penetration-pricing strategy. A woman in Santiago, Chile, who boughta new Chery S21 explained, “The price factor is fairly decisive.I paid $5,500 new and full. Toyota with similar features costsaround $12,000.” Why do you think Chinese automakerschose that pricing strategy? Do you think it was successful?As Chinese regulators pressure these manufacturers to maketheir cars safer, do you think they will be able to keep theirprices low compared with those of the international automakers? Why or why not?26
Two athletes of equal ability are competing for aprize of $10,000. Each is deciding whether to takea dangerous performance-enhancing drug. If oneathlete takes the drug and the other does not, the onewho takes the drug wins the prize. If both or neithertake the drug, they tie and split the prize. Taking thedrug imposes health risks that are equivalent to a lossof X dollars.QuickQuiz Answers1. d 2. c 3. a 4. d 5. c 6. b 7. d 8. ba. Draw a 2×2 payoff matrix describing the decisionsthe athletes face.b. For what X is taking the drug the Nashequilibrium?c. Does making the drug safer (that is, lowering X)make the athletes better or worse off? Explain.
8. Two states, A and B, have signed an arms-control agreement. This agreementcommits them to refrain from building certain types of weapons. The agreement is supposed tohold for an indefinite length of time. However, A and B remain potential enemies who wouldprefer to be able to cheat and build more weapons than the other. The payoff table for A (player1, the row player) and B (player 2, the column player) in each period after signing thisagreement is below. a) First assume that each state uses Tit-for-Tat (TFT) as a strategy in this repeated game.The rate of return is r. For what values of r would it be worth it for player A to cheat bybuilding additional weapons just once against TFT? b) For what values of r would it be worth deviating from the agreement forever to buildweapons? c) Convert both values you found in parts a and b to the equivalent discount factor dusing the formula given in lecture and section. d) Use the answers you find to discuss the relationship between d and r:…
If a) the government uses a tradable permits program for pollution emissions, b) polluting firms are heterogeneous in terms of their marginal abatement costs (MACs), and c) each firm is initially allocated an equal amount of permits, it must be the case that: Select one: a. Firms with higher marginal abatement costs will pay firms with lower marginal abatement costs to abate more. b. Firms with lower marginal abatement costs will end up with more permits than firms with higher marginal abatement costs after trading. c. All firms will end up abating the same amount of emissions. d. All of the above are true. e. All of the above are false.
Five roommates are planning to spend the weekendin their apartment watching movies, and they aredebating how many movies to watch. The tablebelow shows each roommate’s willingness to pay foreach of the movies:Ava Ridley Spike Kathryn QuentinFirst film $14 $10 $8 $4 $2Second film 12 8 4 2 0Third film 10 6 2 0 0Fourth film 6 2 0 0 0Fifth film 2 0 0 0 0A movie on their streaming service costs $15, which theroommates split equally, so each pays $3 per movie.a. What is the efficient number of movies to watch(that is, the number that maximizes total surplus)?b. For each roommate, what is the preferred numberof movies to watch?
Please helo me with this question There are 50 residents that live in a small town in California. Each resident uses electricity and there is one power station that produces electricity for the residents from coal. Each residents' demand for electricity is Q = 10 - 2P and the supply function for the power plant is Q = 150P. For each unit of electricity that the power station produces, there is a corresponding release of pollution that leads to asthma and other health problems for the 50 residents. The marginal damage of each unit of electricity produced, per person, is $.05. a. What is the market equilibrium price and quantity per unit of electricity? b. What is the efficient Pigouvian tax per unit of pollution? c. The government of this small California town decides to impose the efficient Pigouvian per unit tax on the power station. What is the new social optimum price and quantity per unit of electricity? d. What is the government tax revenue? e. What is the gain in total…
Suppose that a study of changes in admission prices reveals that when the price of admissionto the museum increases by 10%, adults reduce their ticket purchases by 10%, senior citizensreduce their ticket purchases by 20%, college students reduce their ticket purchases by 25%,and children reduce their ticket purchases by 30%. If the cost of having a person visit themuseum is the same regardless of whether the person is an adult, senior citizen, collegestudent, or child, which of the following pricing schemes is the most likely to be used by themuseum and why? Group of answer choices The museum will set one price of $12 for everyone because that is the most fair. $8 for children, $10 for college students, $12 for senior citizens, and $15 for adultsbecause the museum can earn higher profits by charging the lowest price to those with theleast elastic demand and the highest price to those with the most elastic demand. $15 for children, $12 for college students, $10 for senior citizens,…
Suppose that an incumbent can commit to producing a large quantity of outputbefore the potential entrant decides whether to enter. So, the incumbent Örst chooseswhether to produce a small quantity or a large quantity. The rival then decides whether toenter. If the incumbent commits to the small output level and if the rival does not enter,the rival makes $0 and the incumbent makes $900. If it does enter, the rival makes $125and the incumbent earns $450. If the incumbent commits to producing the large quantity,and the potential entrant stays out of the market, the potential entrant makes $0 and theincumbent makes $800. If the rival enters, the best the entrant can make is $0, the sameamount it would earn if it didnít enter, but the incumbent earns only $400. Show the gametree. What is the SPNE?
1. Write situations that can present the different barriers at communicationand ways to avoid these.BarriersExample SituationPossible Strategy that canbe used to AvoidMisunderstanding1. Physical Barier2. Semantic Barrier3. PsychologicalBarrier4. Mechanical Barrier5. Cultural Bonet II Identity the nonverbal cues present in eoch situation and underline thewords that links to it. 1. She always wears her bracelet when she joins any contest._2. The reason of avoiding her because of ourmisunderstanding3. Brion likes to pinch my cheeks all the time.-4. The aroma of his cottee wakes her up in the morning_5. Her dance moves really prove that she's a dancer6. Those students who are wearing long sleeves and grayskirt are Tourism students.7. She received a lot of medals in her graduation8. Her parents told him to wait Celine reaches 18 years old,so that he can finally court her.9. Jenna and Kaye can't be separated in their classroom10. His smiles can brighten up my day!
Provide me two points for agree and two points for disagree (with elebaraotion and example)
Externalities are a form of market failure. Identify two externalities related to Covid-19, one positive and one negative. Graph and explain how each externality affects the optimal amount of the good that is generating the externality.