Charlie is willing to pay $10 for a T-shirt that is priced at $9. If Charlie buys the T-shirt, then his consumer surplus is Multiple Choice more than $9 $19. $90 $10. $1
Q: Find Maximum willingness to pay if consumer surplus is $20 and market price is $23
A: The information being given is:- Consumer surplus = $20 Market price = $23 Maximum willingness to…
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A: Consumer surplus is a willingness to pay minus the market price of a product. => Consumer…
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Q: Find the market price when the maximum willingness to pay is $56 and the consumer surplus is $32
A: Generally in the given numerical The maximum willingness to pay is = $56 Consumer surplus = $32 We…
Q: Find a market price when the maximum willingness to pay is $53 And the consumer surplus is $46
A: Given The maximum willingness to pay is $53 Consumer surplus =$46 Let P be the market price.
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A: Market price =$50
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A: Considering the above situation, Janice will not purchase the shoes that is below $50. So, she…
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A: Consumer surplus: The consumer surplus means the consumer is willing and able to pay for the goods…
Q: When the price is $6, there is a surplus of 8 units
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Q: Consumer surplus Multiple Choice O is the difference between the maximum prices consumers are…
A: Consumer Surplus refers to the difference between the highest price a consumer is willing to pay and…
Q: $2.00 $1.50 $1.00 27 28 30 Millions of Gallons of Milk Per Week 20 35 Refer to the above dilagram…
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A: Producer surplus is the difference between the price a producer is getting and its marginal cost.
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A: 16) Given the statement is If a consumer places a value of $12 on a particular good and if the…
Q: If maximum willingness to pay of john is $30 and market price is $20 Find consumer surplus
A: The information being given is:- Maximum willingness to pay = $30 Market price = $20 We have to…
Q: If market demand for a good is Q = 250 -2P,and supply of the good is Q = 8P, consumer surplus is…
A: Answer: Given, Market demand: Q=250-2P Market supply: Q=8P Let us first find the equilibrium price…
Q: Price 110 Supply 100 90 80 70 60 Demand 50 45 40 30 + 20 10 10 20 30 40 50 60 70 80 90 100 110 120…
A: To calculate the surplus, we measure the area. When quantity is less than equilibrium quantity, it…
Q: Valerie buys an iPhone for $240 and gets a consumer surplus of $160. Her willingness to pay for an…
A: Consumer surplus: - it is the difference between a consumer’s willingness to pay and the price he…
Q: Suppose the equation of the demand curve were P=100-(Q/2). If the price of the apples were $40, then…
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Q: If the actual market price of potato chips is $2.50, and steve buys five bags as shown, what is the…
A: Definition: Consumer surplus is defined as the difference between the price that consumers are…
Q: Assume that there are four consumers A, B, C, and D, and the prices that each of them is willing to…
A: The surplus is divided into two categories such as consumer surplus as well as producer surplus.…
Q: Find consumer surplus given the following information:- Maximum willingness to pay = $40 Market…
A: The data presented In the question above is:- Maximum willingness to pay = $40 Market price = $27…
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A: Social surplus is the surplus that includes producer surplus as well as consumer surplus.
Q: Tom tunes pianos in his spare time for extra income. Buyers of his service are willing to pay $155…
A: Given: Buyer's Willingness to pay=$155 Tom's willingness to pay: 1st piano=$120 2nd piano=$125 3rd…
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Q: In the market for a pair of shoes, Jena is willing to pay $75 for a pair while Jane is willing to…
A: Consumer surplus refers to the difference between willingness to pay and the actual price of the…
Q: Joy is thinking to buy a new chair for his office. The market price of the chair is $44 and Joy's…
A: The data presented in the question is:- Market price for the chair = $44 Joy's maximum willingness…
Q: Which of the following would lead to the creation of some consumer surplus? Sam refuses to pay $10…
A: Consumer Surplus refers to the difference between willingness to pay of the consumer and the actual…
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A: Consumer surplus is the difference between the highest willing to pay price of the consumer and the…
Q: If the price of the good is $50, then consumer surplus amounts to
A: Consumer surplus is the difference between money consumer willing to pay and actual price.
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A: "Consumers in economics satisfy there demands by buying commodities and services. Consumer surplus…
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- Dan consumes two goods: peanut butter andjelly sandwiches, which are an inferior good, andchicken salad sandwiches, which are a normalgood. He gets a raise at work. Will the ratio ofpeanut butter and jelly sandwiches to chickensalad sandwiches that he consumes increase ordecrease?how does each consumers indivual consumer surplus change. It is a hot day, and Bert is thirsty. Here is the value heplaces on each bottle of water:Value of first bottle $7Value of second bottle $5Value of third bottle $3Value of fourth bottle $1a. From this information, derive Bert’s demandschedule. Graph his demand curve for bottledwater.b. If the price of a bottle of water is $4, how manybottles does Bert buy? How much consumersurplus does Bert get from his purchases? ShowBert’s consumer surplus in your graph.c. If the price falls to $2, how does quantitydemanded change? How does Bert’s consumersurplus change? Show these changes in yourgraph.
- Economics Gowri has $6 per day to purchase lunch. She spends all of her lunch money on pizza and iced-tea. The price of pizza is $2.00 per slice and iced-tea costs $1 per bottle. a. Draw Gowri's budget constraint and label it BC0. Put pizza on the horizontal axis and iced-tea on the vertical axis. Be sure to identify the intercept values. b. If the price of iced-tea rises to $1.20 per bottle, show what will happen to her budget constraint in your diagram. Be sure to indicate any new intercept values.Refer to Figure 6.1. Assume Tom's budget constraint is AC. If the price of a hot dog is $3, the price of ahamburger isA) $12. B) $6. C) $3. D) $1.50.Alexi has a budget of $21 to spend on toaster and breads. He does not directly gain any utility from owining a toaster but for every slice of toasted bread he consumes he gain 2 units of utility, that is if he owns a toaster. Without the toaster, he gain 0 units of utility from consuming plain bread. Suppose the toaster has inferior quality and will break after toasting only 10 slices, then Alexi needs to buy a new one. The current market price for cheap toaster is $5 and the price for a single slice of bread is $1. Assume that Alexi aims to maximize consumer surplus. In a graph, draw total utility as a function of number of toasted slices, assuming that Alexi buys 1 toaster.
- Alexi has a budget of $21 to spend on toaster and breads. He does not directly gain any utility from owining a toaster but for every slice of toasted bread he consumes he gain 2 units of utility, that is if he owns a toaster. Without the toaster, he gain 0 units of utility from consuming plain bread. Suppose the toaster has inferior quality and will break after toasting only 10 slices, then Alexi needs to buy a new one. The current market price for cheap toaster is $5 and the price for a single slice of bread is $1. Assume that Alexi aims to maximize consumer surplus. Find Alexi's income-consumption curve for slices of bread for incomes between $0 and $21, assuming a price of $1 per slice.Andi is willing to buy a shoe X for Rp. 100, Budi is willing to buy a shoe X for Rp. 90, Tono is willing to buy a shoe X for Rp. 80. it turns out that when he arrives at the shop, the price of the shoe is Rp. 70, so the total consumer surplus is Rp. 60true or false?Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either callher on the land-line phone for five cents per minute or he can drive to see her, at a round-trip cost of $2 in gasolinemoney. He has a total of $10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses ahandy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values inTable 6.6, figure out the points on Jeremy’s consumption choice budget constraint (it may be helpful to do a sketch)and identify his utility-maximizing point
- abby is a single mom with a weekly budget of $100. She can spend her weeklyincome on food and diapers for her son. Price of food is $1 and price of a diaperis 50 cents. Her son needs at least 5 diapers a day, therefore she must purchaseat least 35 diapers weekly. Jennifer’s utility function is U (f, d) = f 0.9d0.1,where f and d represent quantity of food and diapers, respectively.Question 1 Part aFind abbys optimal consumption bundle. Make sure to draw her budgetconstraint and indifference curves and clearly demonstrate your solution.18) Joe's budget constraint equals 500 = 2F + 100S, where $500 is Joe's income, $2 is theprice of food (F, y-axis) and $100 is the price of shelter (S, x-axis). How much food canJoe buy if he buys one unit of shelter?A) 2 unitsB) 200 unitsC) 250 unitsD) 400 unitsE) 300 units19) By selecting a bundle of good X and good Y where MRS = MRT, the consumer issayingA) "I value my last unit of each good equally."B) "I am willing to trade one good for the other at the same rate that I am required todo so by the market prices"C) "I will equate the amounts spent on all goods consumed."D) All of the above.E) A and B only .
