(Look At image to solve these)a. What is the consumer surplus in the equilibrium? b. Suppose there is an increase in the cost of producing flash drives such that the quantitydemanded decreases by 1,000 units for each price.What is the consumer surplus at the new equilibrium? Consider the following market for flash drives.Price Quantity supplied Quantity demanded$653,0000$602,750250$552,500500$507502,250$452,0001,000$401,7501,250$351,5001,500$301,2501,750$252,0001,000$207502,250$152,500500$102502,750$53,0000$03,250

(a)By considering the above given information, the graph for the market of flash lights can be drawn…

Consider the following market for flash drives. Price Quantity supplied Quantity demanded $65 3,000 0 $60 2,750 250 $55 2,500 500 $50 750 2,250 $45 2,000 1,000 $40 1,750 1,250 $35 1,500 1,500 $30 1,250 1,750 $25 2,000 1,000 $20 750 2,250 $15 2,500 500 $10 250 2,750 $5 3,000 0 $0 3,250

Consider the following market for flash drives. Price Quantity supplied Quantity demanded $65 3,000 0 $60 2,750 250 $55 2,500 500 $50 750 2,250 $45 2,000 1,000 $40 1,750 1,250 $35 1,500 1,500 $30 1,250 1,750 $25 2,000 1,000 $20 750 2,250 $15 2,500 500 $10 250 2,750 $5 3,000 0 $0 3,250

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter5: Buying The Necessities

Section: Chapter Questions

Problem 20AA

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Question

(Look At image to solve these)

a. What is the consumer surplus in the equilibrium?

b. Suppose there is an increase in the cost of producing flash drives such that the quantity

demanded decreases by 1,000 units for each price.

What is the consumer surplus at the new equilibrium?

Consider the following market for flash drives.
Price Quantity supplied Quantity demanded
$65
3,000
0
$60
2,750
250
$55
2,500
500
$50
750
2,250
$45
2,000
1,000
$40
1,750
1,250
$35
1,500
1,500
$30
1,250
1,750
$25
2,000
1,000
$20
750
2,250
$15
2,500
500
$10
250
2,750
$5
3,000
0
$0
3,250

Consumer’s gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price and up to the equilibrium quantity. Consumer surplus is represented by area A.

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