Suppose there are three identical flatsavailable to be purchased. Buyer 1 is willing to pay €30,000for one, buyer 2 is willing to pay €25,000for one, and buyer 3 is willing to pay €20,000for one. If the price is €25,000, how many flatswill be sold and what is the value of consumer surplus in this market?
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Suppose there are three identical flatsavailable to be purchased. Buyer 1 is willing to pay €30,000for one, buyer 2 is willing to pay €25,000for one, and buyer 3 is willing to pay €20,000for one. If the
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- Suppose there are three identical blenders available to be purchased. Buyer 1 is willing to pay $30 for one, buyer 2 is willing to pay $25 for one, and buyer 3 is willing to pay $20 for one. If the price is $25, how many blenders will be sold and what is the value of consumer surplus in this market? * a. One blender will be sold and consumer surplus is $30. b. One blender will be sold and consumer surplus is $5. c. One blender will be sold and producer surplus is $5. d. Three blenders will be sold and consumer surplus is $0. e. None of these.Q 1::: 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? Q 2::: It is a hot day, and Bert is thirsty. Here is the value he places on a bottle of water: Value of first bottle $7 Value of second bottle 5 Value of third bottle 3 Value of fourth bottle 1 a. From this information, derive Bert’s demand schedule. Graph his demand curve for bottled water. b. If the price of a bottle of water is $4, how many bottles does Bert buy? How much consumer surplus does Bert get from his purchases? Show Bert’s consumer surplus in your graph. c. If the price falls to $2, how does quantity demanded change? How does Bert’s consumer surplus change? Show these changes in your graph. Q 3::: Ernie owns a water pump. Because pumping large amounts of water is harder than pumping small…1. Consider a market with Qd=240 – 6p and Qs=2p. a. What’s consumer surplus? in the solution it says 1. Qd = Qs gives that 240 – 6p = 2p. Simplifying the equation yields 8p = 240, which gives p*= 30. Plugging P*=30 into either demand or supply gives Q*= 60. CS = 1⁄2 * (40 - 30) * 60 = 300. Where did they get 40 from?
- The following Table refers to four buyers’ willingness to pay for papadums. Each buyeris willing to buy at most one papadum and no more. buyer Willingness to pay ($) for onepapadum Lincoln 17.00 Jefferson 15.00 Franklin 9.00 Washington 3.00 (a) Let the competitive market price be $4.00: calculate the total consumer surplusin the market at this price.(b) Assume now that there is only a single seller of papadums, and she knows eachbuyer’s willingness to pay. Assume that this seller incurs a cost of $4.00 perunit of papadum produced (i.e., the marginal cost is constant). If she intends tomaximise profits, how many papadums would this seller supply to the market,and what price would she charge? Remember, the price has to be the same foreach unit sold. Hint: start at a price of $17 and calculate what profit would be.Then lower the price just enough to attract an additional buyer and calculatewhat the new profit would be. Repeat this until all four buyers are purchasingthe…What is consumer surplus? Explain in words and by drawing supply and demand curves. What is producer surplus? Explain in words and by drawing supply and demand curves. What is total surplus? What is efficiency? How and why do unfettered market forces of supply and demand maximize total surplus and lead to an efficient outcome? What are some reasons that a free market would to fail to create an efficient outcome (ie: fail to maximize total surplus)? Consider the effects of a tax on consumers on consumer and producer surplus. Does this tax increase or decrease the equilibrium price and quantity produced in the market? Does this tax increase or decrease total surplus? Consider the effects of a tax on producers on consumer and producer surplus. Does this tax increase or decrease the equilibrium price and quantity produced in the market? Does this tax increase or decrease total surplus? What is equity of an economy? Is it possible to achieve both an efficient and equitable outcome in an…Assume the price of a particular paint brush is $3.50. Denise purchases the paint brush for $3.50 but was wiling to pay $5.00. Ted purchases the paint brush for $3.50 but was willing to pay $4.00. What is the total consumer surplus for Denise and Ted? Group of answer choices $2.00 $4.00 $5.00 $3.55 $1.50
- suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay $30 for one, buyer 2 is willing to pay $25 and buyer 3 is willing to pay $20 for one. If the price is $25 how many vases will be sold and what is the value of consumer surplus in this market?Sefronia and Bella share an apartment and they are deciding whether or not to purchase a weekly housecleaning service. The value of the service to each of them is $50 and it costs $80 to hire a housecleaner. Should they hire a housecleaner? A. Yes, if each contributes $50, then each stands to gain a consumer surplus. B. No, because each will wait for the other to hire the housecleaner. C. Yes, but only if a housecleaner will accept $50 so that each can take turns to pay the housecleaner. D. No, because it will be difficult for them to agree on which housecleaning service to use.Show all work please thanks D.) Now, according to this graph, how much is the consumer surplus when price is set below the equilibrium level at P=$5? (Use the area of a triangle and the area of a rectangle, length x length) E.) According to this graph, how much is the producer surplus when price is equal at P= $5? (use the area of triangle: Base x Height x 1⁄2) F.)In the graph, how much is deadweight loss at a price of $5? (use the area of a triangle) please show calculations so I know how to arrive at those numbers! Thank you
- Fei, Morgan, and Lakesha are all in the market for new Levi’s jeans. The marginal benefit for each pair of jeans per year for each of them is provided in the following table: Quantity Fei Morgan Lakesha 1 $85 $40 $90 2 $60 $32 $75 3 $32 $24 $55 4 $20 $16 $32 5 $15 $8 $25 If the price of a pair of Levi’s jeans is $32, how many pairs of jeans will each person purchase? How much consumer surplus does each of them receive from the last pair of jeans purchased? How much consumer surplus will each of them receive for each of the pairs they buy at a price of $32? How much do they receive collectively?Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up to $20 each for 10 scarves. When he arrives at Macy’s at 5:00 A.M. on Black Friday, he discovers that scarves are on sale for $12 each. Hugo buys 10 scarves and uses the remaining $80 to buy himself some clothes. How much consumer surplus did Hugo receive from the tenth scarf he purchased? Assuming Hugo follows the Rational Rule for Buyers, why did Hugo only purchase 10 scarves when they were on sale? Shouldn't he have purchased more since they were such a good deal compared to what he was willing to pay? Now suppose the manager at Macy’s had 100 scarves in inventory. She decided to put the scarves on sale for $10, but an employee accidentally listed the sales price as $12. To the manager’s surprise, the store sold all 100 scarves at the $12 sales price. How much producer surplus did Macy’s…Buyer Willingness to Pay David $8.00 Laura $7.00 Ty $5.50 Mallory $4.00 Audrey $3.50 In the above table, at different market prices, which statement is NOT correct? Question 27 options: At a price of $9.00, no buyer is willing to purchase the good. When the price is $3.00, each person would receive consumer surplus. At a price of $4.00, total consumer surplus in the market will be $8.50. At a price of $7.50, the consumer surplus for Laura is $0.50.
