Question 13, Additional Problem 3 The table shows the demand schedule for personal trainer services and the supply schedule of personal trainer services. If all personal trainers agree to charge $80 an hour, how do consumer surplus and producer surplus change? What is the deadweight loss created? When the personal trainers increase the price they charge from $60 an hour to $80 an hour, consumer surplus increases by $

Question 13, Additional Problem 3 The table shows the demand schedule for personal trainer services and the supply schedule of personal trainer services. If all personal trainers agree to charge $80 an hour, how do consumer surplus and producer surplus change? What is the deadweight loss created? When the personal trainers increase the price they charge from $60 an hour to $80 an hour, consumer surplus increases by $

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 6PA

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Figure 7-5 Refer to Figure 7-5. If the supply curve is S and the demand curve shifts from D to D', what is the increase in producer surplus to existing producers? a. $5,625 b. $3,125 c. $625 d. $2,500
Demand Supply (table 4-14)P = 60 - 2QD P = 15 + QSQD = 30 - 0.5P QS = P - 1521. Refer to Table 4-14. The equations above describe the demand and supply for Pauline'sPickled Pomegranates. The equilibrium price and quantity for Pauline's PickledPomegranates are $30 and 15 thousand units. What is the value of consumer surplus?A) $225 thousand B) $50 thousandC) 112.5 thousand D) 337.5 thousand
Figure 4-4 Price (dollars per pound) $9 6 3 4,000 8,000 12,000 Supply Demand Quantity (pounds) Refer to Figure 4-4. The figure above represents the market for pecans. Assume that this is a competitive market. If 4,000 pounds of pecans are sold, O consumer surplus equals zero. O the marginal benefit of each of the 4,000 pounds of pecans equals $3. O the deadweight loss is equal to $12,000. O marginal benefit is equal to marginal cost.
2. 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.
part A, B, C (see graph pic) A)what is the dollar value of the total surplus producer surplus plus consumer surplus when the efficient output level Q1 when is being produced? how large is the dollar value of the consumer surplus at Q1? B) What is the dollar value of the deadweight loss when level Q2 is being produced?what is the total surplus one output level Q2 is being produced? C) what is the dollar value of the deadweight loss went output level Q3 is produced? what is the dollar value of the total surplus when output level Q3 is produced?
A company raises its cost per unit while also increasing its producer surplus per unit. Which of the following is correct if consumer WTP did not change: 1. The company is at a cost disadvantage. 2. Sales price per unit price has increased. 3. Volume of production is reduced. 4. The economic surplus per unit increased. 5. Marginal costs have risen.