Question

In this diagram how do  you label the change in consumer surplus (increase or decrease) and the producer surplus (increase or decrease)? How do you label government revenue(increase or decrease)  and the net change in welfare (net negative or net positive)? 

Price
20
(dollars
per pizza)
Supply, S
12
10
Demand
200 Quantity
(millions of pizzas)
80 100
Expand
Transcribed Image Text

Price 20 (dollars per pizza) Supply, S 12 10 Demand 200 Quantity (millions of pizzas) 80 100

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Economics

Related Economics Q&A

Find answers to questions asked by students like you.

Q: Saved Help Save&Exit Submit Quantity Supplied Quantity Price Demanded $6 300 $1 10 250 $2 50 180 $3 ...

A: If there is no tax, the market will sell the product at the equilibrium price.

Q: Question 32 Consider a firm with production function f(L,K)=3L1/3K2/3. Assume that capital is fixed ...

A: The production function is the technical relation between the inputs used and the output produced. T...

Q: Firms A and B are contemplating whether or not to invest in R&D. Each has two options: “Invest” ...

A: Gross revenue is calculated without deducting any type of costs from the revenue generated. 

Q: Economists can do a reasonably good job of calculating GDP, GDP per capita, NDP, etc. Do you agree? ...

A: GDP refers to the Gross Domestic Product. It is the value of all the final goods and services produc...

Q: Problem 2: Consider a closed three sector economy. Given the following equations: (1) (2) (3) (4) |(...

A: a) Equilibrium level in an economy is the point where income in economy is equal to expenditure.From...

Q: [Indifference Curves] Consider the utility function U(C1, C2) and B 1 In(C1)BIn(C2) 1. Using a progr...

A: The given equation is : U=ln(C1) + Bln(C2)We know, ln(C1) + ln(C2) = ln(C1*C2)

Q: The reservation prices (in dollars) of three classes of demanders (classes A, B, and C) for Ricky Pa...

A: The reservation price refers to the consumers who have set their reservation price as the highest pr...

Q: 2. When a central bank wants to pursue a contractionary monetary policy​, it should   a. ​incr...

A: Answer - Dear student Thank you for submitting your question .Since we answer one question  at a tim...

Q: In Figure 1, suppose the marginal value for gasoline falls by $6 for every quantity demanded for all...

A: Suppose the marginal value for gasoline falls by $6 for every quantity demanded for all gas stations...

Q: Question 13 Consider a firm whose cost function when both L and K are variable is shown in the figur...

A: Total cost: It refers to the total cost incurred while producing the commodity.Average Total cost re...

Q: plans are underway for a new stadium for a baseball team. City officials question the number and pro...

A: Given fixed cost = $4,500,000 , Variable cost = $ 150,000Customer may Purchase at $300,000

Q: (A) Describe the direction and the form of the relationship aside from the outliers it is moderatley...

A: The scatter plot shows a positive non-linear relationship between life expectancy and GDP per person...

Q: Now, consider an economy in which the demand for money is of the formY(1 + it)for t = 0, 1, 2, · · ·...

A: Given: M= Y/(1+it)Y= 150, it= nominal interest rate in period t, real interest rate = 4%

Q: How does federal deposit insurance encourage greater risk taking by banks?  Could the banking system...

A: Banks are the financial institutions regulated by organized or unorganized authorities. Banks work a...

Q: Let Py and Py be the prices for goods X and Y, and let I be Rasheed's income. Rasheed's demand equat...

A: It is given that,Utility function: U = 2XY + Y or U = (2X + 1) YPrice of good X and good Y are Px an...

Q: Suppose firms become very optimistic about future business conditions and invest heavily in new capi...

A: If firms become very optimistic about future business conditions and invest heavily in new capital e...

Q: Suppose that people expect inflation to equal 3 percent, but in fact prices rise by 5 percent. Indic...

A: Inflation rate refers to rise in average price levels of goods and services produced in an economy o...

Q: The residents of the town Ectenia all love economics and the mayor proposes building an economics mu...

A: Part a)The ATC and MC curves are displayed below. Since there are no variable costs, the Average tot...

Q: Can you give an example of the answer for the cpi. I am confused on what they are asking.

A: Suppose the 5 products are apple, guava, orange, melon and kiwi.

Q: monopolist's decision about how many unit to sell is realted to micro or macroeconomics

A: Microeconomics generally studies the behaviour of firms and individuals in decision making with rega...

Q: Given that: U(X,Y) = X1/2+Y1/2 and the demand functions are: X=0.218I Y=0.152I   When I = 50, X = 10...

A: The marginal utility of income refers to the additional utility derived from the increase or decreas...

Q: b. Explain in some detail the 4 phases of the business cycle, Please don’t include Depression as one...

A: Business Cycle: It refers to the fluctuation (rise or fall) in the economic trade that occurs over t...

Q: The following table shows a person's nominal and real wages for three years, as well as the price le...

A: The nominal wage is the monetary wage that the employ or the worker receives from their work. The no...

Q: Which of the following best explains why the monopolist’s marginal revenue is less than the sales pr...

A: Monopoly is a market structure where there is only one seller and many buyers. The seller has comple...

Q: 100 90 80 70 60 ATC 50 40 30 20 AVC МС О 10 + 0 0 5 10 15 20 30 35 40 45 50 QUANTITY (Thousands of s...

A: Since we only answer 1 question out of two, we’ll answer the first. Please resubmit the question and...

Q: Can you help me with 4 and 5

A: At socially optimal level, output is produced at a point where price equals marginal cost. 

Q: Which of the following represents a transfer payment? a. You transfer $1,000 from your bank ac...

A: Option (b) is the correct option for the above-mentioned question.

Q: What are some of the major trading regions?

A: To identify some of the major trading regions.

Q: Question 2 The economic cost of education of a student is the summation of all the economic cost of ...

A: The economic cost of education is defined as how a student can sum up all the economic cost of the r...

Q: Hello I need help with introducing a per unit tax into this diagram? Also How do I do this,label the...

A: Click to see the answer

Q: A perfectly competitive firm will tend to expand its output as long as:A) marginal revenue is positi...

A: A perfectly competitive firm will tend to expand its output as long as Price exceeds marginal cost. ...

Q: Ben Hunt operated a farm under the name of S.B.H. Farms.  Hunt went to Mollary Bank and Trust and re...

A: An indifference curve is a graphical representation of different combinations of two commodities tha...

Q: Question 14 Consider a newspaper with production function f(L,K)= 4min{L,K}, where L is the units of...

A: The production function is shown in white board.f (L, K) = 4 min {L, K}Where, L is the units of labo...

Q: draw graphs to illustrate the difference between a decrease in quantity supplied and a decrease in s...

A: The figure 1 shows decrease in quantity supplied and a decrease in supply for condominiums

Q: Using the aggregate demand and aggregate supply model, explain the effects of the following on price...

A: Aggregate demand curve reflects the equilibrium in the IS-LM model at the different price levels of ...

Q: Part f and i

A: (f)In this part, the U.S. surgeon announces that hot chocolate cure acnes; therefore, knowing this p...

Q: Chapter 10 Problem 7: Table: Remember to show all work and briefly discuss your results. Switzerland...

A: Gross domestic product (GDP) is the monetary value of all final goods and services produced within a...

Q: Assume the following information for an imaginary, closed economy.   GDP = $120,000; consumpti...

A: GDP is equal to $120,000. private saving equal $9,000 and the national saving equal $12,000.

Q: Distinguish the true statements from the false statements True False Answer Bank Externalities are t...

A: Market:Market refers to the place where buyer and sellers of the goods and services comes in close c...

Q: Having problem understanding the following help please.. At $6 per steak, consumers are willing to b...

A: At the price of $6 per steak, consumer is willing to buy two steak and at the price of $2 per steak,...

Q: 1.Using a relevant diagram, illustrate and discuss the Ricardo-Barro Effect 2. Using relevant diagra...

A: Ricardo-Barro Effect or Ricardian equivalence is an economic theory stating that a change in tax rat...

Q: Suppose the aggregate daily demand for campsites in Yosemite Valley is:   Campsites demanded each da...

A: Answer - Campsites Demanded each day = 1000 -10*priceq = 1000-10p........(1)At the moment Yosemite V...

Q: Optimizing economic agents use the real interest rate when thinking about the economic costs and ret...

A: Click to see the answer

Q: Refer to the figure. What is their total profit or loss? –$400,000 $360,000 $840,000 –$200,000

A: The profit is the excess revenue made by the firm after deducting the total cost from the total reve...

Q: Question 2 Suppose that the cost function of a firm is C(q)=4q. Suppose that this is the only firm i...

A: Producer surplus is an advantage taken by the producer due to the variations in the price received a...

Q: Given the following data: Gross Investment Expenditure.. .$200 Government Transfer Payments...150 Bu...

A: a.The gross domestic product is the sum total of money value of all the final goods and services pro...

Q: Describe when a study does or does not have external validity

A: The indication of stability and reliability of the conclusions drawn from a research is called valid...

Q: The income generated from federal funds sold is counted on a bank's income statement as​   a. ...

A: Since we answer only one question at a time, we will answer only the first question. If you want to ...

Q: how higher saving in a country leads to a higher growth rate in that country.

A: Click to see the answer

Q: ‘Lottery A’ refers to a lottery ticket that pays $2,000 with a probability of 0.3, $8,000 with a pro...

A: Expected gains = ∑ (probability * gains)‘Lottery A’ refers to a lottery ticket that pays $2,000 with...