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.
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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
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- 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?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 _______.Marcia spends her money on tee and biscuits and sugar, which she sees as perfect complements. She eats two biscuits with every cup of tea. A cup of tea costs $2 and one biscuit costs $0.2, and she spends $33.60 on tea and biscuits every week. Use a diagram measuring the number of biscuits on the horizontal axis to show her compensated variation and equivalent variation if the price of a biscuit decreases to $0.1. What can you say about the change in her consumer surplus?.
- 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 explainSuppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $5.75$5.75. Michelle was willing to pay up to $7.75$7.75 for the cappuccino, and Paul's Cafe and Bakery was willing to accept $2.25$2.25 for the cappuccino. Based on this information, answer the following questions. Michelle's consumer surplus: $ Paul's Cafe and Bakery's producer surplus: $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.
- What is meant by consumer surplus? a It is the total quantity of a good bought by a consumer divided by the price paid. b It is a measure of an individual consumer's utility from the consumption of a good. c It is the difference between a consumer's maximum willingness to pay and the price. d It is a measure of the total benefit to consumers from the purchase of a good.Suppose broccoli and Velveeta are complements in consumption. Suppose further that the supply of broccoli is increasing. Everything else held constant, consumer surplus in the Velveeta market will _____ and economic surplus in the Velveeta market will _____.] 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.
- Explain the meaning of consumer surplus with the help of example.The graph below depicts Jacques monthly demand for tuna. Suppose the price of tuna falls from $12 per pound to $8 per pound. On the diagram, use the area drawing tool to box in the change in Jacques's consumer surplus. And what is Jacques's consumer surplus increase by $only typed answer Albin’s inverse demand function for pretzels is p( q) = 49 – 6 q, where q is the number of pretzels that he consumes. Currently, the price is $1 per pretzel. If the price of pretzels rises to $7 per pretzel, the change in Albin’s consumer surplus is a. –$56. b. –$42. c. –$45. d. –$90. e. –$42.