he market for a particular pair of shoes, Gert is willing to pay $65 for a pair, while Jane is willing to pay $95 for a pair. The actual price that each has to pay for a pair of these shoes is $55. What is the total amount of the two women's combined consumer surplus? Multiple Cholce $10 $50 $150 less than $40 $160
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- In the market for a particular pair of shoes, Allan is willing to pay 63 for a pair, while Jane is willing to pay 80 for a pair. The actual price that each has to pay for a pair of these shoes is 50. What is the total amount of the two girls' combined consumer surpluses?Janice is willing to pay $100 for the first pair of shoes, $80 for the second pair, $50 for a third, and $30 for a fourth. If shoes cost $50, Janice will buy _____ pairs of shoes and her total consumer surplus will equal _______.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?
- As you now know, we are considering entering the tomato sauce market. We have continued our research and now better understand consumer demand for our jars of sauce as: D(p) = -3p+25 We are prepared to supply: S(p) = 2p-4 In this question, assume that the equilibrium price and quantity are given by: P∗ and Q∗ What is the consumer's surplus at $4?The rent on an apartment in a particular building near campus is $1,200 per month. If Min would be willing to pay up to $1,400, Genevieve would be willing to pay up to $1,500, Fraser would be willing to pay up to $1,600, and Kayden would pay no more than $1,000, what is the consumer surplus for this group of students who would like to live in the building? Explain how you calculated this consumer surplusPart 1) An individual utility function is given by U(x,y) = x·y. Derive this individual indirect utility function. Using this individual indirect utility function, compute her level of utility when I = $800, px = $20 and py = $40. It is equal to 200 utils. Part 2) An individual utility function is given by U(x,y) = x·y. Let I = $800, px = $20 and py = $40. Suppose that a tax t of $10 per unit is imposed on good x. Assume that the full burden of this excise tax is borne by this consumer, i.e. the new price this individual faces for good x is p’x = px + t = $20+ $10 = $30. Use the indirect utility function you derived earlier to compute this person new utility level with this excise tax. It is equal to 133.33 utils. Question: An individual utility function is given by U(x,y) = x·y. Let I = $800, px = $20 and py = $40. Suppose that a tax t of $10 per unit is imposed on good x. Assume that the full burden of this excise tax is borne by this consumer, i.e. the new price this individual…
- 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. Rp. 60. when the price in the store drops to IDR 50, the total consumer surplus drops to below IDR 60 the statement above is true/false?Suppose there are three (3) people in a market for bottles of perfume; Mutumbu, Jasanu and Julius The individual demand for perfumes for each of these consumers is given as 10 bottles for Mutumbu, 15 bottles for Jasanu and 25 bottles for Julius at $60 per bottle for perfume. Thus, the market demand for perfumes if the market price is $60 is. (a)40 bottles (b)60 bottles (c)80 bottles (d) None of theb aboveEach month Larry purchases household utilities. His preferences over gallons of heating oil (x) and units of other utilities (y) can be represented by the utility function: U(x,y) = ln x + ln y. Suppose that the market price of heating oil is $4 per gallon, the price of a unit of other utilities is $1, and that Larry has $320 to spend per month on his utilities. The price of heating oil is too high, so the government proposes a per-unit subsidy of $1.60. Larry can buy heating oil at the price of $2.40 with the per-unit subsidy. However, the government adjusts the price of heating oil again. The second proposal sets the market price of heating oil to $2.56. 1) What is the equivalent variation of the price change from $2.40 to $2.56? 2) What is the cost to the government?
- Suppose that a consumer perceives X and AOG (all other goods) to be perfect (one-for-one) substitutes. The consumer has an income of $100 and the price of x is 80 cents. If the price of x rises to 1.20, what is the resulting change in consumer surplus? Show work and explainIn the following cases, calculate the inverse demand and the consumer surplus at the price p = 10 dollars, as well as the graphical representation. a) D(p) = 100 − p. b) D(p) = 100 − bp, where b is a positive constant. c) D(p) = 100 − 0, 25p. d) D(p) = a − p, where a is a positive constant. 2- The price goes from 10 to 13 dollars, a) D(p) = 100 − p. b) D(p) = 100 − bp, where b is a positive constant. c) D(p) = 100 − 0, 25p. d) D(p) = a − p, where a is a positive constant.Consumer surplus: define it and explain how economists derive the concept of consumer surplus imposing some assumptions on the consumer’s preferences and on its behaviour when choosing the allocation of limited resources.