Choose the best statement. ... A. Producer surplus equals the total revenue from selling the good. B. Producer surplus is the excess of the value of the good over the market price, summed over the quantity produced. C. If producers decrease the supply of a good, their producer surplus will increase. OD. An increase in the demand for a good increases producer surplus.

Choose the best statement. ... A. Producer surplus equals the total revenue from selling the good. B. Producer surplus is the excess of the value of the good over the market price, summed over the quantity produced. C. If producers decrease the supply of a good, their producer surplus will increase. OD. An increase in the demand for a good increases producer surplus.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter4: Prices: Free, Controlled, And Relative

Section: Chapter Questions

Problem 4WNG

See similar textbooks

Similar questions

ppose the market condition for good X is characterized by an inelastic supply curve and a perfectly-elastic demand curve. Which of the following is true? It may help to draw the diagram first and then attempt the question. A- Consumer surplus is0 B-Producer surplus is higher than consumer surplus C-Consumer surplus is 0 Producer surplus and consumer surplus are equal D-Not enough information given
USE TABLE #1: The calculation you used to find the producer surplus for the efficient market for electric automobiles is 1/2 x ($ ____________ - $__________ ) x ( _____ - ________ ). (Remember to use a comma, if a comma is needed and to include the decimal point and two numbers to the right of the decimal point).
5 During the pandemic in 2020, many more people decided to use home delivery services in order to have meals delivered to them from the restaurant. Suppose the supply of home delivery services is perfectly elastic. You will be asked several questions about this situation. Explain how the pandemic affected the demand for home delivery services. Explain the effect on the equilibrium price and quantity of home delivery services. Explain the effect on the efficient quantity of home delivery services. Explain the effect on the total consumer surplus, the total producer surplus, and the total surplus in the market for home delivery services.
a) Define complements and substitutes. b) Can you think of goods and services that make up complements and substitutes of each other? c) What is producer surplus?
Suppose demand for a good is QD = 100 - P and supply is QS = -20 + P. What is the consumer surplus? a. 200 b. 400 c. 600 d. 800
Suppose that the price of materials used to produce computer hardware, such as graphics cards, is decreased. Show what occurs to price, quantity, consumer surplus, producer surplus, and total surplus in the market for computers graphic cards using a supply-and-demand diagram (draw a graph). Furthermore, provide five explanations for what occurred.
Kat is willing to pay $880 for 22 bottles of grape wine. The market price of 12 bottles of grape wine is $360. Because of the increase in the price of grapes, the price of grape wine increases to $420 for 12 bottles.(A) Kat’s consumer surplus has _______ by $___ because of an increase in the price of grapes.
When does a producer surplus occur? a. when individuals pay less than the maximum amount they would have been willing to pay for a good or service b. when producers sell a product for the exact minimum amount they would be willing to accept c. when producers sell a product for less than the minimum amount they would be willing to accept d. when producers sell a product for more than the minimum amount they would be willing to accept
Producer surplus measures: A. The same thing as a market or quantity surplus B. The difference between the market price and the producer's willingness to sell. C. The additional cost of engaging in a market transaction. D. "The additional benefit of being a producer in the market, no matter if the producer has sold anything or not."
What is the consumer surplus? A) $40 million B)$50 million C)$60 million d)$70 million
Need help with homework - economic questions (supply/demand) (b) Consider the market for electric cars. The Government of Canada announces that consumers who purchase electric cars manufactured after 2020 are entitled to a taxrebate of$5,000. How does this affect the market for electric cars? Explain using a diagram. (c) In 1904, Standard Oil Company controlled 91 percent of American oil production.Standard’s concentration of market power alarmed many politicians and common citi-zens. In 1911, the U.S. Supreme Court ruled that Standard had violated the Sherman Antitrust Act, and ordered the corporation to break up into smaller companies. Be-cause of this, Standard Oil’s market share dropped from 91 percent to 64 percent of oilproduction. How does this affect the market for oil. Explain using a diagram.
Here is the Gadget market: Quantity Demanded = 100 - P Quantity Supplied = 9P What is consumer surplus in this market?