Draw a diagram that shows consumer surplus and producer surplus at the market equilibrium. Briefly explain what is meant by consumer surplus and producer surplus.
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(d) Draw a diagram that shows
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- 5-1. You currently have an old hardwood cabinet that you want to sell. You can either pick a price and try to sell it at a yard sale or auction it off on eBay. Which method do you think will yield a higher producer surplus? Why?Question 41 Please refer to the description of a tax on a market, represented by the graphic Consumer surplus after the tax is represented by the area(s) ______. Check all that apply. Group of answer choices C G F E L D H5-4 The table below demonstrates each consumer’s willingness to pay for a product. Construct a step graph of the five consumers’ willingness to pay. Now calculate consumer surplus for each consumer when the price is $10. What is the total consumer surplus at this price? Who will buy the product?
- Assume all benefits (and costs) accrue to the buyers (and sellers) and the buyers and sellers interact in a market. Currently we have three buyers who value a good at $40. There are three possible sellers A, B, C whose marginal costs of production are $20, $30 and $50. Another seller, D, enters the market. D's marginal costs of production is $40. What is the change in surplus caused by D's entry?Do not include the $ sign and remember to include a negative sign if you want to say that surplus has decreased8. Total economic surplus The following diagram shows supply and demand in the market for tablets. Use the black point (plus symbol) to indicate the equilibrium price and quantity of tablets. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus.1a. Describe a personal experience of when you purchased a product or service whereby you feel you maximized surplus as a consumer b. why this qualifies as being an example of consumer surplus.
- 7 A government decides to reduce air pollution by reducing the use of petrol and imposes a specific tax of £0.50 on energy companies for each litre of petrol sold. Use a supply and demand diagram and show the effect of the tax on consumer and producer surplus and comment on the incidence of the tax on consumers of energy and producers of energyCan you solve this question, my main concern is the consumer surplus and producer surplus, could you elucidate it extensively, Could you ensure to use the proper formula for consumer surplus and producer surplus.What is Consumer Surplus at a price of $5? Price Quantity Demanded Quantity Supplied 12 1 6 10 2 5 8 3 4 6 4 3 4 5 2 2 6 1 Multiple Choice $4 $20 $16
- Question 39 Please refer to the description of a tax on a market, represented by the graphic What is the price that the seller receives (net of tax) after the tax is imposed?1. The government of Antigua wishes to introduce income tax to increase government revenue. In so doing, a consultant was hired to make recommendations on the best way forward. The consultant proposed that the government shouldn’t tax any employee earning below XCD25,000.00 annually or the employee first XCD25,000.00 annually. Thereafter, any employee earning between XCD25,000.00 and XCD40,000.00 annually should pay 5.5% income tax and then any employee earning above XCD40,000.00 should pay 10.5% income tax. For the above information answer the following: a. Derive a mathematical function to represent the consultant’s position clearly identifying all variables and intervals. b. From part a) above, state the name of ALL the mathematical functions derived. c. If Jane (someone working in Antigua) pays XCD750.00 in income tax, calculate Jane’s annual income.The graph represents the market for artichokes (in pounds per week) at a Midwest farmers' market. Suppose the equilibrium price of artichokes is $3 per pound and the equilibrium quantity is 100 pounds of artichokes per week. Using the graph, show the area representing consumer surplus in this market, and then determine how much consumer surplus will be generated by the market each week. Instructions: Use the tool provided 'CS' to illustrate this area on the graph. Consumer surplus: ? $ Please show me how to represent consumer surplus in the graph and how to find the consumer surplus. Please explain it. Thank you.