In the market for a pair of shoes, Jena is willing to pay $75 for a pair while Jane is willing to pay $85 for a pair. The actual price that each must pay for a pair of shoes is $65. What is the combined amount of consumer surplus of Jena and Jane? Multiple Choice $10 $160 $30 $20
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In the market for a pair of shoes, Jena is willing to pay $75 for a pair while Jane is willing to pay $85 for a pair. The actual price that each must pay for a pair of shoes is $65. What is the combined amount of
Multiple Choice
-
$10
-
$160
-
$30
-
$20
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- 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 surplusSuppose the demand and supply curves for good X are both linear. The demand price for the first unit of X is $28, and the supply price for the first unit of X is $6. If the equilibrium price for good X is $16 and the equilibrium quantity of X is 24,000 units, then total consumer surplus is ________, total producer surplus is ________, and total social surplus is ________. $144,000; $120,000; $264,000 $144,000; $672,000; $384,000 $120,000; $144,000; $264,000 $28; $6; $16 $672,000; $144,000; $384,000There are six potential consumers of computer games, each willing to buy only one game. Consumer 1 is willing to pay $40 for a computer game, consumer 2 is willing to pay $35, consumer 3 is willing to pay $30, consumer 4 is willing to pay $25, consumer 5 is willing to pay $20, and consumer 6 is willing to pay $15. Suppose the market price is $29. What is the total consumer surplus? The market price decreases to $19. What is the total consumer surplus now? When the price falls from $29 to $19, how much does each consumer’s individual consumer surplus change? How does total consumer surplus change?
- 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 second pizza, $3 for the third, $4 for the fourth, and so on. In a closed market equilibrium, the social surplus will be $A producer is willing to produce 3 units at 3 dollars per unit and another producer is willing to produce 3 units at 6 dollars per unit. If the equilibrium price is 11 dollars, what is the combined producer surplus for the two producers?which statement is true In the absence of market power and externalities, efficiency is achieved in a market when the sum of producer surplus and consumer surplus is maximized. The benefit received by sellers in a market is measured by producer surplus and producer surplus is calculated as the amount sellers receive for their product minus the cost of production. In a market, the marginal buyer is the buyer who would be the first to leave the market if the price were any higher. Moving production from a high-cost producer to a low-cost producer will decrease total surplus. Suppose the United States changed its laws to allow for the legal sale of a kidney and the government allowed a free market in organs for transplant then there would be a decrease in the price of a kidney and an increase in the shortage of kidneys for transplant. Total surplus in the market is the summation of consumer surplus and producer surplus and it is maximized at the market equilibrium in the absence of…
- Explain the social efficiency by taking into account consumer surplus and producer surplus.The market for phones is perfectly competitive. Suppose for simplicity, we have the potential buyers below with their Willingness to Pay (WTP) for a phone. Every person buys only 1 phone if they buy a phone. If market price for a phone is $715, what is Consumer Surplus in the market? Person WTP A $651 B $374 C $574 D $1,223 E $550 F $1,517Both a home buyer (A) and seller (B) of a house agree on a price of 2.5 million dollars. A values the house at 3 million dollars and B values the house at 2 million dollars. Before the date of delivery of the keys, C offers to buy this house from B for 3 million dollars because C values the house at 4 million. (a) Assuming transaction costs are zero (0), fully explain what actions A, B, and C will take and how social surplus will be distributed among them if A has the remedy of expectation damages against B. (b) Assuming transaction costs are zero (0), fully explain what actions A, B, and C will take and how social surplus will be distributed among them if A has the remedy of specific performance against B. (c) Assuming transaction costs are zero (0), fully explain what actions A, B, and C will take and how social surplus will be distributed among them if A has no remedy against B. (d) How high can transaction costs be before it matters which remedy A has?
- D(x) is the price, in dollars per unit, that consumers are willing to pay for x units of an item, and S(x) is the price, in dollars per unit, that producers are willing to accept for x units. Find (a) the equilibrium point, (b) the consumer surplus at the equilibrium point, and (c) the producer surplus at the equilibrium point. D(x)=(x−9)^2, S(x)=x^2+6x+57suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay $30 for one, buyer 2 is willing to pay $25 and buyer 3 is willing to pay $20 for one. If the price is $25 how many vases will be sold and what is the value of consumer surplus in this market?Refer to Figure 9-2. Without trade, consumer surplus amounts to Group of answer choices $9,720. $19,440. $23,280. $20,280.
