Carlos buys six new plants for his garden. If he has purchased according to the rational rule, his consumer surplus on the sixth plant is equal to: O zero. O price plus marginal benefit. total benefit minus price. price minus marginal cost.
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- Assume the price of a particular paint brush is $3.50. Denise purchases the paint brush for $3.50 but was wiling to pay $5.00. Ted purchases the paint brush for $3.50 but was willing to pay $4.00. What is the total consumer surplus for Denise and Ted? Group of answer choices $2.00 $4.00 $5.00 $3.55 $1.50Anderson is willing to pay $12. Kendrick can provide the item for $10, but producing the item imposes a cost of $8 on Talib. If Anderson purchases the item from Kendrick for $11, what is the total surplus from the transaction? (Remember, do not enter the $, and enter the - if TS is negative.)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.
- In a market, the consumer surplus is 800,000 units and the producer surplus is 100,000. Which of the following statement is true? Group of answer choices The market is efficient since marginal benefit is equal to marginal cost. The market is inefficient since consumer surplus is greater than producer surplus and marginal benefit is equal to marginal cost. The market is efficient since consumer gain more than the producer. The market is inefficient since consumer surplus is greater than producer surplus.Quantity = 0 4 8 12 16 20 Price = 10 8 6 4 2 0 If the purchase price is set to 5, What is the consumer surplus when Q = 16 What is the consumer surplus when Q= 4 What is the maximum amount of surplus ?If marginal benefit is equal to marginal cost, then the: A. sum of producer surplus and consumer surplus equals zero. B. market has squeezed out total surplus so that it equals zero. C.sum of producer surplus and consumer surplus is as large as possible. D.producer surplus is equal to the consumer surplus.
- 2. Individual demand and consumer surplus Consider the market for electric vehicles. The market price of each electric vehicle is $110,000, and each consumer demands no more than one electric vehicle. Suppose that Kenji is the only consumer in the electric vehicle market. Their willingness to pay for an electric vehicle is $275,000. Based on Kenji's willingness to pay, the following graph shows his demand curve for electric vehicles. Shade the area representing Kenji's consumer surplus using the green rectangle (triangle symbols).Suppose the equation of the demand curve were P=100-(Q/2). If the price of the apples were $40, then how much consumer surplus in total do consumers enjoy in the apple market? ( no diagram needed)You are considering shoplifting a head of broccoli from the farmer’s market in SLO. Your buyer value for the broccoli is $1.75. The broccoli is available for legal purchase for $1.50. For comparison purposes, assume that if you don’t steal the broccoli, you will make the choice that makes you best off within the law. Which statement below is correct? Group of answer choices: -Stealing the broccoli leads to an increase in total surplus but also causes a reduction in surplus for owners of the broccoli. -Stealing the broccoli leads to a decrease in total surplus and also cause a reduction in surplus for owners of the broccoli. -Stealing the broccoli leads to an increase in total surplus and does not harm anyone else. -Stealing the broccoli does not lead to an increase or decrease in total surplus and also causes a reduction in surplus for owners of the broccoli.
- A firm has two types of customer. High-value customers have utility 3 ln(1 + x) − p if they buy xunits of the good for the price p. Low-value customers have utility 2 ln(1 + x)−p if they buy x unitsof the good for the price p. There are 10 customers of each type. The firm has the marginal costc < 1 for producing each unit of x. If customers do not buy anything they get zero utility. Help with question a) below pleaseWe have three buyers who value a good at $45. There are three possible sellers A, B, C whose marginal costs of production are $20, $30 and $50.Assuming all benefits (and costs) accrue to the buyers (and sellers) what is total surplus created if the buyers and sellers interact in a market? Do not enter the $sign. Notice that you have enough information to only compute surplus for integer values of the good so I should not have to say–assume integer values for good–you should know it.John purchases a 1964 Mustang for $40,000 and gets consumer surplus of $5,000 A) What is his willingness to pay? B) If he had purchased the car for $$35,000, what would his consumer surplus be? B) If the price of the Mustang were $45,000, would would his conumer surplus have been?
