A, Willingness Willingness Consumer Producer to Pay to Accept Name Name (WTP) (WTA) $35 E. $85 $46 F. $45 $72 C. G. $435 $94 D. H. Use the table above to answer the following question. Hint: Consider how the table displays consumer WTP in descending order and producer WTA in ascending order, and think about how this is similar to the graph of the supply & demand model. Assume the table describes 4 consumers and 4 producers in the market for concert tickets. The price in the market is $80. If consumer "A" purchases a ticket, %3D what would be the consumer surplus for consumer "A"? Note: enter answer with only numerical values and round up to the nearest tenth. For example, if you think the answer is "$101.58" then enter the answer "101.6" in the space below.

A, Willingness Willingness Consumer Producer to Pay to Accept Name Name (WTP) (WTA) $35 E. $85 $46 F. $45 $72 C. G. $435 $94 D. H. Use the table above to answer the following question. Hint: Consider how the table displays consumer WTP in descending order and producer WTA in ascending order, and think about how this is similar to the graph of the supply & demand model. Assume the table describes 4 consumers and 4 producers in the market for concert tickets. The price in the market is $80. If consumer "A" purchases a ticket, %3D what would be the consumer surplus for consumer "A"? Note: enter answer with only numerical values and round up to the nearest tenth. For example, if you think the answer is "$101.58" then enter the answer "101.6" in the space below.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.12P

See similar textbooks

Similar questions

Consider the market for dry vegetables. Suppose that there is an increased taste for healthy diet. What is the intital effect of this shock in the market for dry vegetables? The increased empahsis on health takes the market for dry vegetables out of the equililibrium. Explain how the market adjust to the situation.
Explain how Hick's Paradox challenges the traditional assumption of monotonicity in consumer preferences and its implications for welfare economics.
Consider a consumer who could earn $400 per week and has 50 weeks available each year to allocate between work (H) and nonmarket time (L). They have no non-labour income. Their utility function is U = C2L , where C is the value of consumption goods. What is their optimal choice for the number of weeks in nonmarket time and consumption? Show this in a diagram. Suppose the government introduces a policy that (i) offers no benefits to people who do not work, (ii) offers a wage subsidy on earnings at a rate of 25%, with a maximum benefit of $5000, and (iii) the benefit is subject to reduction at a rate of 25% for every dollar earned above $20,000 in the year. Show the person’s new budget constraint in a new diagram, and discuss how the person’s optimal choice might change (you do not have to calculate this, but point to where it is likely on the new budget constraint). Discuss how income and substitution effects play a role.
Distinguish between the following concepts:I. Microeconomics and macroeconomicsII. II. Scarcity and choiceIII. Opportunity cost and scale of preference.b. With the aid diagrams show the differences between the following:I. Increase in demand and increase in quantity demand II. Decrease in supply and decrease in quantity suppliedIII. Price ceiling and price floor
Consider a worker who earns $20/hour in the labor market and receives $50 per week innon-labor income. Assume the total number of hours available for work (h) and leisure(L) is 168 hours per week (i.e., ? = 168 = ℎ + ?). a. Draw the budget constraint for this individual. Label the endowment point. b. What is the maximum value of consumption that this individual could achieve ina week? c. In the United States, the Fair Labor Standards Act requires workers to be paid 1.5times their usual hourly wage for “overtime” work, defined as work in excess of40 hours in a week. If this law applies to the worker described above, how does itchange the budget constraint? d. Now suppose Congress passes an income tax. The income tax applies to labor andnon-labor income. The Fair Labor Standard Act is still in effect. The first $1,000in weekly income is exempt from the tax. However, every dollar above $1,000 istaxed at a rate of 10%. (To be clear: the tax on $1,000 in income is 0, the tax on$1,001 is…
Jason Stilton is the chief executive officer of RightLiving a company that buys life insurance policies at a discount from terminally ill persons and sells the policies to investors for 85% of the value of the future benefit. The patients recieve the cash to use for medical and other expenses and the investors are guaranteed a positive return on thier investment. The diffreance between the purchace and sale prices is the RightLivinf Profit. Stilton is aware that some sick patients may obtain insurance policies through fraud (Not revealing thier illness on the insurance application). An insurance company that discovers such will cancel the policy and refuse to pay. Stilton beleives that most of the policies he has purchased are legitimate, but he knows some are probably not. Question Using IDDR approch, discuss the decision process Stilton should use in deciding whether to disclose the risk of fraudulent policies to potential investors.
For each “Market Change” there is a Demand column and a Supply Column. In each of those two columns, you shouldwrite one of these three things: Increase, Decrease, or Neither. (Every market change will have at least one “Neither”.) #5 Market Change Demand Supply #6 Market Change Demand SupplyMinimum wage rises. Recently, the price of pools rose instores.Why? Why?#7 Market Change Demand Supply #8 Market Change Demand SupplyOver the past few years,there have been increasedtariffs on goods madeoverseas. How have theseaffected steel markets?(HINT: A tariff is sometimescalled another name.)You start a coffee shop in theStudent Center at CTC. You noticethat you sell about the sameamount of coffee and muffins.Based on this, you decide toincrease the price of muffins. Howwould this affect coffee?Why? Why?#9 Market Change Demand Supply #10 Market Change Demand SupplyIn May, not long after manyreceived a fiscal stimuluscheck, the Nintendo Switchwas difficult to find in stores.Teleconferencing…
The market for low-skilled workers is highly competitive, due to the high numbers of low skilled individuals. If the labor supply is given by the equation QS = 10W and measured per hour, and the demand for labor is given by the equation QD = 240 − 20W. Where Q measures the quantity of labor hired (in thousands of hours). Answer the following: (d) After the implementation of the $9 minimum wage, in terms of surplus how much better off are low-skilled workers and how much worse off are employers? (e) If the minimum wage is set at $11 rather than $9 how does the deadweight loss and surplus change?
Consider an income guarantee program with an income guarantee of $5,000 and a benefit reduction rate of 40%. A person can work up to 2,000 hours per year at $10 per hour. a. Draw the person’s budget constraint with the income guarantee. b. Suppose that the income guarantee rises to $7,500 but with a 60% reduction rate. Draw the new budget constraint c. Which of these two income guarantee programs is more likely to discourage work? Explain. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
"There's two things driving the prices," says wool general manager for PGG Wrightson, Grant Edwards. "One, it's the sporting apparel. We've had a huge increase in merino wools going into that sporting apparel. Also we're still seeing a strong benchmark from that Italian market, the suiting market. Plus we're seeing diminishing merino numbers around the world."November 2017 How is the number of sheep impacting on the wool market?
(a) If lemons cost $1 per pound, the wage rate is $1 per hour, and theprice of lemonade is p, what is his marginal cost function? (b) What is his supply function? (c) If lemons cost $4 per pound, the wage rate is $9 per hour, and theprice of lemonade is p, explain in detail how these changes would affect theoriginal supply function in part (b)? ONLY ANSWER PART B AND C.
Suppose that the president proposes a new lawaimed at reducing healthcare costs: All Americans arerequired to eat one apple daily.a. How would this apple-a-day law affect thedemand and equilibrium price of apples?b. How would the law affect the marginal productand the value of the marginal product of applepickers?c. How would the law affect the demand andequilibrium wage for apple pickers?