Producer surplus from a unit of output is the difference between the market price and the seller's cost of producing that unit. a. True b. False
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Q: Image attached
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- You currently have a television that you want tosell. You can either pick a price and try to sell it ata yard sale or auction it off on eBay. Which methoddo you think will yield a higher producer surplus?Why?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?Consider the demand-supply model of 2-in-1 laptops: Qd = 5000 - 2 P, Qs = -600 + 2P 1. Find the equilibrium price (in dollars) and quantity of the laptops. 2. Find the consumer surplus and the producer surplus.
- 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, $0Just for (d) I'd like to know how to compute the producer surplus. Thanks!Please give a neat and step-by-step solution. Question: Given, P = 200 - 3Q P = 50 + 2Q What is the market equilibrium P and Q? If the price goes up by $10, how will the customers react? (Hint: Find PED and comment. First find new P* and Q*) If the government regulates the market by imposing 10% sales tax, what will be the change in producer surplus? Imagine there is no tax, and the market is competitive. What will be the profit maximization output level?
- Suppose the the demand for a product is given by Qd = 40 − 3P , andsupply by Qs = 5 + 2P .(a) What is the equilibrium price and quantity?(b) What is the consumer surplus?(c) What is the producer surplus?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 surplus2. Consider a competitive market characterized by the following marketdemand and supply curves.Qd=10000-10P Qs=40P-2000If the government enacts a binding price floor at 500, calculate the resultingconsumer surplus, producer surplus, and deadweight loss.Hint: a diagram might help. Show your work.
- The table shows the individual seller costs of selling Krispy Kreme doughnuts for a fundraiser. Name Cost Alpha Chi Omega $2 Sigma Chi 5 Beta Theta Pi 8 Alpha Kappa Alpha 10 Sigma Mu Omega 13 If the price is $9, Sigma Mu Omega's producer surplus is:3.Producer Surplus is which of the following (check all that apply) a. Profit plus fixed costs b. total revenue minus total cost c. total revenue minus total cost d. Total revenue minus variable costDiscuss real world examples of Consumer and Producer Surplus ?