Chapter 9Problem 6:The figure below illustrates the market for cycles in a country.IPrice383634DomesticSupply2624222018t16t14t12tWorldprice10DomeeticDemandQuantity600520 560440 480400280 320 36024080 120 160 20040Without trade, cons umer surplus amounts to what amount?a.Without trade, producer surplus amounts to what amount?b.Without trade, total surplus amounts to what amount?c.With trade, the price of tricycles in this country is at what price and what amount?d.With trade, consumer surplus is how much?e.With trade, producer surplus is how much?f.With trade, total surplus is how much?g.

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Asked Oct 17, 2019
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Chapter 9
Problem 6:
The figure below illustrates the market for cycles in a country.
IPrice
38
36
34
Domestic
Supply
26
24
22
20
18t
16t
14t
12t
World
price
10
Domeetic
Demand
Quantity
600
520 560
440 480
400
280 320 360
240
80 120 160 200
40
Without trade, cons umer surplus amounts to what amount?
a.
Without trade, producer surplus amounts to what amount?
b.
Without trade, total surplus amounts to what amount?
c.
With trade, the price of tricycles in this country is at what price and what amount?
d.
With trade, consumer surplus is how much?
e.
With trade, producer surplus is how much?
f.
With trade, total surplus is how much?
g.
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Chapter 9 Problem 6: The figure below illustrates the market for cycles in a country. IPrice 38 36 34 Domestic Supply 26 24 22 20 18t 16t 14t 12t World price 10 Domeetic Demand Quantity 600 520 560 440 480 400 280 320 360 240 80 120 160 200 40 Without trade, cons umer surplus amounts to what amount? a. Without trade, producer surplus amounts to what amount? b. Without trade, total surplus amounts to what amount? c. With trade, the price of tricycles in this country is at what price and what amount? d. With trade, consumer surplus is how much? e. With trade, producer surplus is how much? f. With trade, total surplus is how much? g.

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Expert Answer

Step 1

“Hey, since there are multiple subparts  posted, we will answer first three subpart question. 

Step 2

a.

Consumer surplus:

Consumer surplus can be calculated as follows:

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1 Consumer surplus -x(Maximum price -equilibrium price)x Equilibrium quantity 2 (37-19)x360 (18)x360 3,240 Thus, the value of consumer surplus is $3,240

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Step 3

b.

Producer surplus:

Producer surplus can be calculate...

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1 Producer surplus x(Equilibrium price - Minimum price) x E quilibrium quantity 2 글09-1)x360 (19 (18)x360 2 3, 240 Thus, the value of producer surplus is $3,240

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