Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a smartphone at a market price of $175.(Note: If a person will not sell a smartphone at the market price, indicate this by leaving his or her rectangle in its original position on the palette.)400350KevinBrian300250CrystalHilary200Market PriceEdison150Edison100CrystalHilary50Brian1256.7KevinQUANTITY (Smartphones)will sell smartphones at the given market price, and totalBased on the information on the preceding graph, you can tell thatproducer surplus in this market will be $Suppose the market price of a smartphone increases to $275.PRICE (Dollars per smartphone) On the following graph, use the rectangles once again to shade the areas representing producer surplus for each person who is willing to sell asmartphone at the new market price: blue (circle symbols) for Brian, green (triangle symbols) for Crystal, purple (diamond symbols) for Edison, tan(dash symbols) for Hilary, and orange (square symbols) for Kevin. (Note: If a person will not sell a smartphone at the new market price, indicate thisby leaving his or her rectangle in its original position on the palette.)400350KevinBrian300Market Price250CrystalHilary200Edison150Edison100CrystalHilary50Brian45678Kevin3QUANTITY (Smartphones)Based on the information in the second graph, when the market price of a smartphone increases to $275, the number of sellers willing to sell aand total producer surplusto $tosmartphonePRICE (Dollars per smartphone)

The market price for Smartphone is provided to be $175 and in market there are 5 sellers. Sellers…

PRet price, indicate this by leaving his or her rectangle in its original position on the palette.) Kevin Brian Crystal Hilary Market Price Edison Edison Crystal Hilary an 3. 6. 7 Kevin QUANTITY (Smartphones) will sell smartphones at the given market price, and total tion on the preceding graph, you can tell that is market will be s

PRet price, indicate this by leaving his or her rectangle in its original position on the palette.) Kevin Brian Crystal Hilary Market Price Edison Edison Crystal Hilary an 3. 6. 7 Kevin QUANTITY (Smartphones) will sell smartphones at the given market price, and total tion on the preceding graph, you can tell that is market will be s

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 5P

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Use the following diagram to calculate total consumer surplus at a price of $12 and production of 500 thousand flu vaccinations per day. for the same equilibrium, calculate total producer surplus. Assuming price remained at $12 but production was cut to 200 thousand vaccinations per day, calculate producer surplus and consumer surplus. Calculate the deadweight loss from underproduction.
Refer to the figure below. What is the consumer surplus generated at a price of $150 per game console? Instructions: Use the tool provided “CS” to illustrate this area on the graph. Consumer surplus: $ ____ What is the producer surplus generated at a price of $150 per game console? Instructions: Use the tool provided “PS” to illustrate this area on the graph. Producer surplus: $ ____ e. What is total economic surplus at a price of $150 per game console? Economic surplus: $ _____ f. What is the economic surplus generated if the market were in equilibrium? Instructions: Use the tool provided “ESeq” to illustrate this area on the graph. Economic surplus in equilibrium: $ ______
If the actual market price of potato chips is $2.50, and steve buys five bags as shown, what is the value of his consumer surplus?
Find the consumers' surplus and the producers' surplus at the equlibrium level for the given price-demand and price-supply equations. Include a graph that identifies the consumers' surplus and the producers' surplus. Round all values to the nearest integer. p=D(x)=35−0.05x; p=S(x)=15+0.05x The value of x at equilibrium is_____
04. The maximum that buyers are willing to pay for the 8-th unit of this product is (a) $4 (b) $12 (c) $18 (d) $22 (e) $24 05. The minimum that suppliers will accept for the twentieth unit of this product is (a) $2 (b) $8 (c) $12 (d) $18 (e) $22 06. Assuming that this market is at equilibrium, what is the "consumer's surplus" and producer's surplus? (a) consumer's surplus is $72; producer's surplus is $36 (b) consumer's surplus is $98; producer's surplus is $49 (c) consumer's surplus is $32; producer's surplus is $16 (d) consumer's surplus is $36; producer's surplus is $72 (e) consumer's surplus is $144; producer's surplus is $14
(ALL OWNERSHIP GOES TO CENGAGE) Consider the market for air conditioning units. The following graph shows the demand and supply for air conditioning units before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of air conditioning units in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. (image below) 2. Taxes and welfare Consider the market for air conditioning units. The following graph shows the demand and supply for air conditioning units before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of air conditioning units in the absence of a tax. Then use the green point (triangle symbol) to shade the…
Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Statement Consumer Surplus Producer Surplus Neither I sold a used laptop for $140 on eBay last week. This week, someone offered me $30 for it. Even though I was willing to pay up to $47 for a used textbook, I bought a used textbook for only $42. I sold a jersey sweater for $35, even though I was willing to go as low as $25 in order to sell it.
As in the previous question, use the numbers and figure three to determine the producer surplus and complete your table to correspond to the remaining columns of Table 1. The table that needs to be completed is: Types of Consumers Acceptable Max Price Consumers Surplus Actual Price A $70 $30 $40 B $60 $20 $40 C $50 $10 $40 E $40 $0 $40 F $30 -$10 $40 G $20 -$20 $40 Producer Cumulative Total Surplus Producers Surplus Acceptable Minimum Price a $20 b $20 c $20 e $20 f $20 g $20
Determine whether the following statements is true or false, and explain why. The consumers’ surplus and the producers’ surplus equal each other.
In the market for a particular pair of shoes, Allan is willing to pay 63 for a pair, while Jane is willing to pay 80 for a pair. The actual price that each has to pay for a pair of these shoes is 50. What is the total amount of the two girls' combined consumer surpluses?
In the market for pizza, both consumer surplus and producer surplus will increase when the price of a pizza increases from $3 to $6. O True False
which statements are true Harold is willing to pay $25 and Maude is willing to pay $18 for a steak dinner at a fine restaurant. When the price of the steak dinner increases from $15 to $18, Harold experiences a decrease in consumer surplus, but Maude does not. Assume that at the equilibrium price, consumer surplus is $100 and producer surplus is $60. At equilibrium, total surplus is $40. Assume there are only three sellers in a particular market. The cost of production for Annie is $50, for Beth it is $40 and for Cathy it is $35. If the price in the market is $45 then Annie will sell the product but Beth and Cathy will not sell. Price ceilings and price floors usually reduce the welfare of society because quantity demanded does not equal quantity supplied if the price control is binding. Suppose that at the equilibrium price of $50, the equilibrium quantity is 400 units and consumer surplus is $8,000. If the equilibrium price falls to $40 and the equilibrium quantity increased to 450…