Bob purchases a book, and his consumer surplus is $4. If Bob is willing to pay $12 for the book, then the price of the book must be Select one: a.$3 b.$12 c.$5 d.$8
Q: Figure 5.1 shows an individual's demand curve for time per month spent telecommunicating while…
A: In a market, demand curve of an individual for a specific good represents his willingness to pay for…
Q: 4. On Thursday nights, Hacienda Pizza Co. has a pasta special. Jacob likes the restaurant’s pasta,…
A: The equilbrium price and quantity of a good sold in the market are determined by the forces of…
Q: QUESTION 1 Refer to the table below for four buyers Buyer's name Willingness to Pay Peter $175 Hansa…
A: Consumer surplus is the difference between the price that the consumer is willing to pay and the…
Q: I don't understand the meaning of this sentence. This is the concept that experts say when answering…
A: The consumer surplus concept is derived from and based on the diminishing marginal utility law. The…
Q: e. How did the price ceiling change the total surplus compared to free market equilibrium of #9?
A: equilibrium is achieved where Qd=Qs.Thus Q*= 40 millions, P*= $40
Q: IF you have 2 goods, that are perfect one to one substitutes, and the price of one of the goods…
A: Perfect substitutes are those commodities that can be replaced perfectly in place of another.…
Q: shade the total surplus (consumer plus producer surplus)
A: consumer surplus is defined as the difference in price paid by the consumer for a particular…
Q: Instructions: Enter your answers as a whole number. a. What is the total surplus if Bob buys a unit…
A: DISCLAIMER = As per guidelines we are only allowed to do the first three sub-parts, so for the rest…
Q: 1. Consumer and Producer Surplus If sandals are selling in the marketplace for $55, that does not…
A: Surplus is the benefit that society's agents recieve when they find the some some differences in the…
Q: There are four consumers willing to pay the amounts for following haircuts:Gloria:$35 Jay:$10…
A: Willingness to pay is defined as the maximum amount that the consumer is ready to pay for a unit of…
Q: 3. It is a hot day, and Nina is thirsty. Here is the value, in money terms, she places on a bottle…
A: The demand schedule shows the respective amount of quantity demanded at each of the different…
Q: On Thursday nights, a local restaurant has a pasta special. Ari likes the restaurant's pasta, and…
A: Consumer surplus is the difference between the highest price a consumer is willing to pay and the…
Q: ppose the market condition for good X is characterized by an inelastic supply curve and a…
A: The demand shows the ability and willingness of consumers to buy a good. The supply shows the…
Q: 1. Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $10, the…
A: Consumer surplus and producer surplus are some of the measures of welfare.
Q: 20 Consumer surplus is: a. The quantity of a good consumers get but did not have to pay for b. the…
A: The price at which or below which a consumer will definitely purchase one unit of a commodity is…
Q: Larry purchases a book for $10, and his consumer surplus is $3. How much is Larry willing to pay for…
A: Consumer surplus = the amount a buyer is willing to pay for a good - the amount the buyer actually…
Q: 2. There are six potential consumers of computer games, each willing to buy only one game. Consumer…
A: "Consumer surplus refers to the difference between the price a consumer is willing to pay for a…
Q: Assume the price of a particular paint brush is $3.50. Denise purchases the paint brush for $3.50…
A: The equilibrium price and quantity of a good sold in the market are determined by the forces of…
Q: What creates surplus? a. All of these are true b. When people with no money who really need…
A: Surplus is the difference between the consumer's willingness to pay and the actual price he is…
Q: On the Dollar value of the X axis starts at 0 at corner of the graph and goes up 1, 2, 3 and the…
A: Consumer surplus is the difference between what you are willing to pay and what you actually pay. X…
Q: Consumer surplus exists when a A) person buys something with a marginal benefit more than what they…
A: Consumer surplus can be understood when the consumer willingness to pay is higher than the actual…
Q: there are 4 consumers willing to pay the following amountd a-7 b-2 c-8 d-5 there are 4 haircutting…
A: Consumer’s maximum willingness to pay is called reservation price. From the producer’s point of…
Q: Problem 1 Tammy loves donuts. The table shown reflects the value Tammy places on each donut she…
A: Diminishing marginal utility means that as the consumer goes on consuming the god, eventually the…
Q: hat is the consumer surplus is you buy a 65 inch 4K tv you have wanted for $5
A: Consumer surplus refers to the economic measure of extra benefit of consumers. consumer surplus is…
Q: Josh is lost in the desert. He determines that he would pay $50 for a bottle of cold Gatorade. He…
A: Given: Price that Josh is willing to pay = $50 Consumer surplus that he realized (CS) = $47.25
Q: 1. Melissa buys an iPhone for $240 and gets consumer surplus of $160. a. What is her willingness to…
A: Consumer surplus is the difference between the maximum price a consumer is willing to pay and the…
Q: A. Calculate: the consumer surplus the producer surplus dead weight loss
A: Price control is a method to regulate the market when prices of particular goods increases or…
Q: The price of a Xbox1 is $399, and you were ready to purchase one. You happened to get your paycheck…
A: Consumer surplus is defined as the difference between the ability to pay of consumer and the amount…
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: Question 1. Melissa buys an iPhone for $120 and gets consumer surplus of $80. a) What is her…
A: Given: Purchase price=$120 Consumer surplus=$80
Q: a 3.00 0.10 20 Figure 9.6 shows an individual's demand curve for time per month spent…
A: Consumer surplus is the excess of what the consumer expected to pay and what he actually paid for…
Q: 1. Determine the amount of consumer surplus generated in each of the following situations a. William…
A: Consumer surplus (CS) is obtained by subtracting the amount of money that a customer is willing to…
Q: 8. What is the size of consumer surplus? 9. What is the size of producer surplus?
A: Consumer surplus is the excess of willingness to pay of the buyer over the actual price of the good.…
Q: An early freeze in California sours the lemon crop. Explain what happens to consumer surplus in the…
A: Market for lemon An early freeze in California sours the lemon crop. This will decrease the supply…
Q: Akbar bought a $40 a ticket to a comedy show. He values the show at $167. Birbal values watching the…
A: Consumer Surplus: It refers to the difference between the maximum price the buyer is willing to pay…
Q: Amanda Mendez goes to a local café and orders a sandwich. Her willingness to pay for that sandwich…
A: Demand curve shows the various combinations of willingness to pay of a consumer at different level…
Q: Using this diagram calculate : 1) The producer surplus after change 2) The total surplus after the…
A: The amount that a producer gains from selling over the price at which they would otherwise be…
Q: The graph shows the demand curve for wallets and the market price of a wallet. 18.00 Vhat is the…
A: The consumer surplus is the difference between the maximum price consumer wants to pay and actual…
Q: In the diagram, consumer surpluses before and after the tax are ______ and ______, respectively.…
A: In economics, consumers surplus is the gain that the consumers will receives by paying less than…
Q: 5. If a consumer is willing to pay Rs 20 for an apple and is able to buy it for Rs. 15, then the…
A: # Consumer surplus is given to be as the difference between consumers willingness to pay and the…
Q: 1. Consider a market where the demand is given by QD = 120 -P and supply is given by QS =÷P. What…
A: Here we calculate the Consumer surplus and producer surplus and choose the correct option , so the…
Q: The demand curve for cookies is downward-sloping. When the price of cookies is $2, the quantity…
A: The demand curve shows the association between the amounts of a good or service demanded at each…
Q: Price PA E Quantity The consumer surplus after the tax is equal to the sum of areas Select one: O a.…
A: In a market, when tax is imposed in either parties, their will have an impact on both the parties…
Q: 1. Determine the amount of consumer surplus generated in each of the following situations new ´…
A: Consumer surplus can be understood as the benefit to the buyers. The formula for consumer surplus…
Q: Define complements and substitutes. b) Can you think of goods and services that make up complements…
A: Demand for a commodity changes with an increase or decrease in price of its related commodities.…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Larry purchases a book for $10, and his consumer surplus is $3. How much is Larry willing to pay for the book?Neha buys an iPhone for $240 and gets a consumer surplus of $160. Her willingness to pay for an iPhone is . If she had bought the iPhone on sale for $180, her consumer surplus would have been . If the price of the iPhone had been $500, her consumer surplus would have beenChin purchases five protein bars at a price of $3 each. The marginal benefit he receives from each bar is $5 for the first bar, $4.50 for the second bar, $4 for the third bar, $3.50 for the fourth bar, and $3 for the fifth bar. The marginal cost of producing the bars is $2 each. What is Chin's consumer surplus on the fifth bar?
- Janice is willing to pay $100 for the first pair of shoes, $80 for the second pair, $50 for a third, and $30 for a fourth. If shoes cost $50, Janice will buy _____ pairs of shoes and her total consumer surplus will equal _______.Q 1::: Melissa buys an iPod for $120 and gets consumer surplus of $80. a. What is her willingness to pay? b. If she had bought the iPod on sale for $90, what would her consumer surplus have been? c. If the price of an iPod were $250, what would her consumer surplus have been? Q 2::: It is a hot day, and Bert is thirsty. Here is the value he places on a bottle of water: Value of first bottle $7 Value of second bottle 5 Value of third bottle 3 Value of fourth bottle 1 a. From this information, derive Bert’s demand schedule. Graph his demand curve for bottled water. b. If the price of a bottle of water is $4, how many bottles does Bert buy? How much consumer surplus does Bert get from his purchases? Show Bert’s consumer surplus in your graph. c. If the price falls to $2, how does quantity demanded change? How does Bert’s consumer surplus change? Show these changes in your graph. Q 3::: Ernie owns a water pump. Because pumping large amounts of water is harder than pumping small…] It is a hot day, and Elmo is thirsty. Here is the value of Elmo places on a bottle of water:] Value of first bottle $7 Value of second bottle $5 Value of third bottle $3 Value of fourth bottle $1 From this information, derive Elmo’s demand schedule. Then graph his demand curve for bottled water. If the price of a bottle of water is $4, how many bottles does Elmo buy? How much consumer surplus does Elmo get from his purchases? Show Elmo’s consumer surplus in your graph. If the price falls to $2, how does quantity demanded change? How does Elmo’s consumer surplus change? Show these changes in your graph.
- Melissa buys an iPod for $120 and gets consumer surplus of $80. a. What is her willingness to pay?b. If she had bought the iPod on sale for $90, what would her consumer surplus have been?c. If the price of an iPod were $250, what would her consumer surplus have been? (3) * Add file(consumer surplus) The price of a fairly standard Boba tea is $6.00. I would be willing to pay $10 dollars for the first tea, S8 for the second, S7 for the third, S5 for the fourth, S3 for the fifth, S2 for the sixth, and nothing for any additional teas. How many teas would I buy?Naisa buys an iPhone for $240 and gets consumer surplus of $160.a. What is her willingness to pay?b. If she had bought the iPhone on sale for $180, what would her consumer surplushave been?c. If the price of an iPhone were $500, what would her consumer surplus have been? Answer must be correct.Show step by stepcalculation.
- Josh is lost in the desert. He determines that he would pay $50 for a bottle of cold Gatorade. He happens upon a grocery store, buys a bottle of cold Gatorade, and realises a consumer surplus of $47.25. What did he pay for the Gatorade? Select one: a.$50 b.$47.25 c.$97.25 d.$2.75Myra buys an iPhone for $280 and gets consumer surplus of $120. (a) What is her willingness to pay? (b) If she had bought the iPhone on sale for $180, what would her consumer surplus have been? (c) If the price of an iPhone were $500, what would her consumer surplus have been?Suppose that Nabisco is willing to sell its first packet of Oreos for $1, the second for $2, the third for $3, and the fourth for $4. If the price of Oreos is $2.50, what is the producer surplus? (Assume that Nabisco CANNOT sell partial packs of Oreos.)
