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In a competitive market for toilet paper, the highest price consumers are willing to pay is $12 per pack and the lowest price producers are willing to accept is $7 per pack. The market is in equilibrium where the price is $8 per pack, at which 10 million packs are sold. Assume that both demand and supply curves are straight line. When the market in the scenario above is in equilibrium, the consumer surplus is $ _____ million, the producer surplus is $ ____million, and the total economic surplus is $____ million.   2.In the market above, the consumers' marginal benefit from the 10,000,000 pack is $____and the producers' marginal cost of it is $_____

In a competitive market for toilet paper, the highest price consumers are willing to pay is $12 per pack and the lowest price producers are willing to accept is $7 per pack. The market is in equilibrium where the price is $8 per pack, at which 10 million packs are sold. Assume that both demand and supply curves are straight line. When the market in the scenario above is in equilibrium, the consumer surplus is $ _____ million, the producer surplus is $ ____million, and the total economic surplus is $____ million.   2.In the market above, the consumers' marginal benefit from the 10,000,000 pack is $____and the producers' marginal cost of it is $_____

ECON MICRO
ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 3.8P
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1. In a competitive market for toilet paper, the highest price consumers are willing to pay is $12 per pack and the lowest price producers are willing to accept is $7 per pack. The market is in equilibrium where the price is $8 per pack, at which 10 million packs are sold. Assume that both demand and supply curves are straight line.

When the market in the scenario above is in equilibrium, the consumer surplus is $ _____ million, the producer surplus is $ ____million, and the total economic surplus is $____ million.

 

2.In the market above, the consumers' marginal benefit from the 10,000,000 pack is $____and the producers' marginal cost of it is $_____

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