Select the correct answer below: Producer surplus is the benefit producers receive for selling goods in a market. On a graph, producer surplus is the area between the market price and the segment of the supply curve below the equilibrium. O Producer surplus is the same as consumer surplus. Producer surplus is the difference between the amount that suppliers in the market are willing to supply goods for and the amount they actually receive for those goods.

Select the correct answer below: Producer surplus is the benefit producers receive for selling goods in a market. On a graph, producer surplus is the area between the market price and the segment of the supply curve below the equilibrium. O Producer surplus is the same as consumer surplus. Producer surplus is the difference between the amount that suppliers in the market are willing to supply goods for and the amount they actually receive for those goods.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter4: Prices: Free, Controlled, And Relative

Section: Chapter Questions

Problem 4WNG

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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: $ ______
Use the following graph to answer the question: how much is producer surplus? What is the total value to consumers of consuming the first ten units of this good? Use the following graph to answer the question: how much is producer surplus? What is the total value to consumers of consuming the first ten units of this good?
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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.
Use the linear demand and supply curves shown below to answer the following questions.You must show all calculations step-by-step or no credit will be given. a) The market or equilibrium price is $__________. b) When 10,000 units are produced and consumed, total consumer surplus is $__________, and total producer surplus is $__________. c) At the market price in part a, the net gain to consumers when 10,000 units are purchased is $__________. d) At the market price in part a, the net gain to producers when they supply 10,000 units is $__________. e) The net gain to society when 10,000 units are produced and consumed at the market price is $__________, which is called __________. f) In market equilibrium, total consumer surplus is $__________, and the total producer surplus is $__________. g) The net gain to society created by this market is $__________.
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_____
If the market demand for a product shifts to the right (parallel to the first demand curve), which of the following is correct? A. producer surplus and consumer surplus both decrease. B. producer surplus increases, consumer surplus decreases C. producer surplus decreases, condumer surplus increases. D. producer surplus and consumer surplus both increase
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Explain the Consumer Surplus and Producer Surplus concept. Why this surplus concept is important in the market analysis? How price changes create inequilibrium in the market?
What is a producer surplus? Describe how it is illustrated on a supply and demand diagram?
Consider the market for commercial fans. The following graph shows the demand and supply for commercial fans before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of commercial fans 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. Complete the following table by using the previous graphs to determine the values of consumer and producer surplus before the tax, and consumer surplus, producer surplus, tax revenue, and deadweight loss after the tax. Note: You can determine the areas of different portions of the graph by selecting the relevant area. Before Tax After Tax (Dollars) (Dollars) Before Tax (Dollars)…