Jen values her time at $60 an hour. She spends 2 hours giving Colleen a massage.Colleen was willing to pay as much at $300 for the massage, but they negotiate a priceof $200. In this transaction,a. consumer surplus is $20 larger than producer surplus.b. consumer surplus is $40 larger than producer surplus.c. producer surplus is $20 larger than consumer surplus.d. producer surplus is $40 larger than consumer surplus

Jen values her time at $60 an hour. She spends 2 hours giving Colleen a massage.Colleen was willing to pay as much at $300 for the massage, but they negotiate a priceof $200. In this transaction,a. consumer surplus is $20 larger than producer surplus.b. consumer surplus is $40 larger than producer surplus.c. producer surplus is $20 larger than consumer surplus.d. producer surplus is $40 larger than consumer surplus

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 1CQQ

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The many identical residents of Whoville love drinking Zlurp. Each resident has the following willingness to pay for the tasty refreshment: a. The cost of producing Zlurp is 150, and the competitive suppliers sell it at this price. (The supply curve is horizontal.) How many bottles will each Whovillian consume? What is each persons consumer surplus? b. Producing Zlurp creates pollution. Each bottle has an external cost of 1. Taking this additional cost into account, what is total surplus per person in the allocation you described in part (a)? c. Cindy Lou Who, one of the residents of Whoville, decides on her own to reduce her consumption of Zlurp by one bottle. What happens to Cindys welfare (her consumer surplus minus the cost of pollution she experiences)? How does Cindys decision affect total surplus in Whoville? d. MayorCrinch imposes a 1 tax on Zlurp. What is consumption per person now? Calculate consumer surplus, the external cost, government revenue, and total surplus per person. e. Based on your calculations, would you support the mayors policy? Why or why not?
Isabelle values her time at $60 an hour. She spends2 hours giving Jayla a massage. Jayla was willingto pay as much as $300 for the massage, but theynegotiated a price of $200. In this transaction,a. consumer surplus is $20 larger than producersurplus.b. consumer surplus is $40 larger than producersurplus.c. producer surplus is $20 larger than consumersurplus.d. producer surplus is $40 larger than consumersurplus.
Carrie is willing to pay $1400 for the new Samsung Galaxy phone. Samsung is selling the new Galaxy phone for $1200. It costs Samsung $600 to produce this phone. The total economic surplus if Carrie purchases this phone is $________. Im not sure which one is right one individual said onsumer surplus = 1/2(willing to pay - selling price ) *quantity CS = 1/2 ( 1400 - 1200) *1 CS = 100 Producer surplus = 1/2( selling price - willing to receive)*quantity PS = 1/2 ( 1200-600)*1 PS =300 total economic surplus = PS +CS = 400 and another said According to the given information, total economic surplus would be: =12×Maximum willingness to pay-Minimum Willingness to accept×quantity sold=12×$1400-$600×1=$400=$800
Melissa buys an iPod for $120 and gets consumer surplus of $80. a. What is her willingness to pay?b. If she had bought the iPod on sale for $90, what would her consumer surplus have been?c. If the price of an iPod were $250, what would her consumer surplus have been? (3) * Add file
Illustrate an example of your choice and discuss consumer surplus, producer surplus, Total surplus, and deadweight loss with the help of the graphs.
how do i arrange the the drawing of a demand and supply curve, where in supply, there are six suppliers with the cost 12, seven suppliers with the cost of 36, and seven suppliers with the cost of 48 then demand: there are 10 demanders with the cost of 50, and 10 demanders with the cost of 24? stripe the area of consumer surplus, and identify the equilibrum price and quantity.
Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up to $20 each for 10 scarves. When he arrives at Macy’s at 5:00 A.M. on Black Friday, he discovers that scarves are on sale for $12 each. Hugo buys 10 scarves and uses the remaining $80 to buy himself some clothes. How much consumer surplus did Hugo receive from the tenth scarf he purchased? Assuming Hugo follows the Rational Rule for Buyers, why did Hugo only purchase 10 scarves when they were on sale? Shouldn't he have purchased more since they were such a good deal compared to what he was willing to pay? Now suppose the manager at Macy’s had 100 scarves in inventory. She decided to put the scarves on sale for $10, but an employee accidentally listed the sales price as $12. To the manager’s surprise, the store sold all 100 scarves at the $12 sales price. How much producer surplus did Macy’s…
Q 1::: Melissa buys an iPod for $120 and gets consumer surplus of $80. a. What is her willingness to pay? b. If she had bought the iPod on sale for $90, what would her consumer surplus have been? c. If the price of an iPod were $250, what would her consumer surplus have been? Q 2::: It is a hot day, and Bert is thirsty. Here is the value he 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 a. From this information, derive Bert’s demand schedule. Graph his demand curve for bottled water. b. 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. c. If the price falls to $2, how does quantity demanded change? How does Bert’s consumer surplus change? Show these changes in your graph. Q 3::: Ernie owns a water pump. Because pumping large amounts of water is harder than pumping small…
Naisa buys an iPhone for $240 and gets consumer surplus of $160.a. What is her willingness to pay?b. If she had bought the iPhone on sale for $180, what would her consumer surplushave been?c. If the price of an iPhone were $500, what would her consumer surplus have been? Answer must be correct.Show step by stepcalculation.
Table 2 Consumer Willingness to Pay Curly $50 Moe 30 Larry 15 Refer to Table 2. The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne. If the price of one of the bottles is $24 dollars Curly will buy two bottles, Moe will buy one bottle and Larry will buy no bottles. Curly and Moe receive a total of $80 of consumer surplus from buying one bottle each. Larry will buy no bottles. Curly will receive $26 of consumer surplus from buying one bottle. Larry will receive $15 of consumer surplus since he will buy no bottles.
A. Calculate: the consumer surplus the producer surplus dead weight loss B. Which of the two options listed in the photo would be preferred by the producers? Which of the two options listed in the photo would be preferred by society as a whole?
Use the table below to answer part a and b. Buyer Willingness to Pay Lori $50.00 Audrey $30.00 Zach $20.00 Calvin $10.00 a) If the price of the product is $15, then who would be willing to purchase the product? b) If the price of the product is $18, then the total consumer surplus is _____ c) Chad is willing to pay $5.00 to get his first cup of morning latté; he is willing to pay $4.50 for a second cup. He buys his first cup from a vendor selling latté for $3.75 per cup. He returns to that vendor later in the morning to find that the vendor has increased her price to $3.90 per cup. Chad buys a second cup. His consumer surplus is ____ d) Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $10, the cost of mowing the second lawn is $12, and the cost of mowing the third lawn is $15. His producer surplus on the first three lawns of the day is $53. If Ronnie charges all customers the same price for lawn mowing, that price…