Price 20 15 10 B D - I IE 100 250 Quantity S D If the government decides to restrict the quantity that is sold to 100, which of the following is not a true statement? a. There will now be an efficiency loss due to underproduction X b. Mutually beneficial transactions have been missed. c. The market is not at equilibrium d. Total surplus will fall by areas C and E e. Consumer surplus will be maximized
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- Sophie pays Sky $50 to mow her lawn every week.When the government levies a mowing tax of $10 onSky, he raises his price to $60. Sophie continues tohire him at the higher price. What is the change inproducer surplus, change in consumer surplus, anddeadweight loss?a. $0, $0, $10b. $0, −$10, $0c. 1$10, −$10, $10d. 1$10, −$10, $0Consumer Surplus is defined as the area between____________ Question 5Answer a. the supply curve, the demand curve, Q = 0 and the quantity exchanged b. the price paid, the demand curve, Q = 0 and the quantity exchanged c. the price paid, the supply curve, Q = 0 and the quantity exchanged d. the price paid, the demand curve, Q = 0 and the efficient quantitysupplu and demand equations: p= D(q)= 70-.2x p= S(q)=13+.004x^2 find equilibrium, consumer surplus and producer surplus.
- If Sam is willing to pay $50 for one good X, $30 for a second, $20 for a third, $8 for a fourth, and the market price is $10, then Sam’s consumer surplus isa. $10. b. $40. c. $70. d. $100. PreviousNextYour grandmother likes old-fashioned yard salesand doesn’t understand why everyone is so excitedabout eBay. Explain to her why the creation of amarket that enables people who don’t live in thesame town to buy and sell used goods increasestotal surplus over the yard-sale market.Price =120-Q^2 Total cost = 30Q Find: 1- consumer surplus 2- profit 3- total social welfare 4- deadweight loss
- A. The demand curve for a product is D = -2p + 800 , where the demand is units , and p is the price in $ . When the price is $ 100 , calculate the consumer surplus . Also , show a graph that indicates the consumer surplus . B. The supply curve for a product is S = 5p - 400 , where the supply is 5 units , and p is the price in $ . When the price is $ 200 , calculate the producer surplus . Also , show a graph that indicates the producer surplusThe price of apples that shane buys monthly drops from $8 to $4, the equilibrium quantity is 4. What would be the increase amount of consumer surplus?This question doesn’t involve any numerical calculation. The USDA considers investing in R&D to make production less costly. The supply function of Cabbage is perfectly elastic. a. Draw the supply and demand for cabbage in the market before and after the investment in R&D.b. Mark with letters (A, B, C, D, …) the relevant intersections of the supply and demand curves and indicate what is the consumer surplus, what is the producer surplus, and what is the social surplus.
- 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 fileParents in Eldham want their kids to learn the piano. The families in the table below are in the market for a piano. Their Willingness to Pay (WTP) for a piano is given in the table. Each family buys only 1 piano, if they buy a piano. If market price for a piano is $25,000, what is Consumer Surplus in the market?Q)Using this diagram calculate : 1) The producer surplus after change 2) The total surplus after the change Explains it correctly