Time left 0:Henry is willing to pay 45 cents, and Janine is willing to pay 55 cênts, for 1 pound of bananas. When the price ofbananas falls from 50 cents a pound to 40 cents a pound,Select one:O a. Henry experiences an increase in consumer surplus, but Janine does not.Ob. Janine experiences an increase in consumer surplus, but Henry does not.O c. both Janine and Henry experience an increase in consumer surplus.O d. neither Janine nor Henry experiences an increase in consumer surplus.

Consumer surplus is an important concept for understanding the welfare of consumers in an economy,…

Answered: Henry is willing to pay 45 cents, and…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 4PA

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4 d'Artagnan, Athos, Porthos, and Aramis are good friends and passionate readers of modern fiction. When Alexandre Dumas's new book 'The Three Musketeers' came out last month, they all went to buy a copy. The price was 5 francs. Their willingness to pay were as follows: d'Artagnan: 35 francs, Athos: 30 francs, Porthos: 25 francs, and Aramis: 20 francs. Assuming there was no shortage of the book, the total consumer surplus was 110 francs 70 francs 90 francs 50 francs We cannot compute the total consumer surplus without information about the costs.
1) Complete the first two rows of the following table by indicating which areas on the graph represent consumer surplus and producer surplus prior to the shift in supply. Then complete the second two rows by indicating which areas on the graph represent consumer surplus and producer surplus after the change in production costs. Check all that apply. A B C D E F G Initial Consumer Surplus Initial Producer Surplus New Consumer Surplus New Producer Surplus 2) True or False: Consumers are hurt most by rising production costs when the supply of silverware is very elastic. True False
USE TABLE #1: Now, assume the market for electric automobiles is an efficient market. The consumer surplus for the market for electric automobiles is $_____. (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).
Only typed answer Dominic is willing to pay $12 for a single pizza; Stephany is willing to pay $7; and Tyler is willing to pay $5. There are no other potential consumers for pizza. Cheezbuzz, the supplier of pizza, has a cost of $1 for the first pizza, $2 for the secondpizza, $3 for the third, $4 for the fourth, and so on. In a closed market equilibrium, the social surplus will be $ $18 If the world price is $10.50, a total of ______ pizzas will be exported.
] It is a hot day, and Elmo is thirsty. Here is the value of Elmo places on a bottle of water:] Value of first bottle $7 Value of second bottle $5 Value of third bottle $3 Value of fourth bottle $1 From this information, derive Elmo’s demand schedule. Then graph his demand curve for bottled water. If the price of a bottle of water is $4, how many bottles does Elmo buy? How much consumer surplus does Elmo get from his purchases? Show Elmo’s consumer surplus in your graph. If the price falls to $2, how does quantity demanded change? How does Elmo’s consumer surplus change? Show these changes in your graph.
Neha buys an iPhone for $240 and gets a consumer surplus of $160. Her willingness to pay for an iPhone is . If she had bought the iPhone on sale for $180, her consumer surplus would have been . If the price of the iPhone had been $500, her consumer surplus would have been
June's evaluation of packets of nacho chips in terms of $MU is as follows: 1st packet: $4; 2nd packet: $3.50; 3rd packet: $2.90; 4th packet: $2.30; 5th packet: $1.60. If the price of nacho chips is $1.50, and June buys 5 packets, calculate her marginal consumer surplus for each packet and the total consumer surplus form all 5.
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.
It is a hot day and Bert is thirsty. Here is the value he places on a bottle of water: Bottle of Water Value Value of first bottle $7 Value of second bottle $5 Value of third bottle $3 Value of fourth bottle $1 From this information, derive Bert’s demand schedule. Graph his demand curve for bottled water. If the price of a bottle of water is $4, how many bottles does Bert buy? How much consumer surplus does Bert get from his purchases? Show Bert’s consumer surplus in your graph. If the price falls to $2, how does quantity demand change? How does Bert’s consumer surplus change? Show these changes in your graph.
(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?
please help mw with this question. Thank you Question 2 Consider a country that produces two goods wheat (W) and cotton (C) with two factors of production: land (T) and labor (L). The technology for wheat and cotton are as follows. Each unit of wheat requires 10 units of labor and 1 unit of land. Each unit of cotton requires 30 units of labor and 1 unit of land. Denote the wage by w and the rent of land by r. a. Suppose a country has 500 units of labor and 20 units of land. Determine the allocation of labor and land between the two goods algebraically and then show it diagrammatically. How much of wheat and cotton are produced in the economy? b. Now suppose that the labor supply increases to 540 units. Determine the allocation of labor and land between the two goods algebraically and then show them diagrammatically. Verify the Rybczynski’s theorem. c. Now Suppose Malaysia has 500 units of labor and 20 units of land, while Indonesia has 80 units of land and 8000 units of labor. Which…
A) If the price of a canister of maple syrup is $35, how many canisters will Joe Mapleworth purchase & what is Joe Mapleworth's consumer surplus at $35? B) If the price of a canister of maple syrup drops to $25, how many canisters will Joe Mapleworth purchase & what is Joe Mapleworth's consumer surplus at $25? C) If the price of a canister of maple syrup drops to $15, how many canisters will Joe Mapleworth purchase & what is Joe Mapleworth's consumer surplus at $15?

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