The diagram to the right shows a market in which a price floor has been imposed. Identify the following (enter all values as integers). Q 5.25 a. The deadweight loss is s[ Supply b. The transfer of consumer surplus to producers is $| 4.25--A. Pnoor c. Producer surplus with this price floor is s в в3.25 d. Consumer surplus with this price floor is Ss[ D E 2.25 F Demand 1.25 35,000 70,000 Quantity Price

The diagram to the right shows a market in which a price floor has been imposed. Identify the following (enter all values as integers). Q 5.25 a. The deadweight loss is s[ Supply b. The transfer of consumer surplus to producers is $| 4.25--A. Pnoor c. Producer surplus with this price floor is s в в3.25 d. Consumer surplus with this price floor is Ss[ D E 2.25 F Demand 1.25 35,000 70,000 Quantity Price

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter3: Market Demand And Supply

Section3.A: Consumer Surplus, Proudcer Suplus, And Market Efficency

Problem 6SQ

See similar textbooks

Similar questions

(ALL OWNERSHIP GOES TO CENGAGE) Consider the market for air conditioning units. The following graph shows the demand and supply for air conditioning units before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of air conditioning units 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. (image below) 2. Taxes and welfare Consider the market for air conditioning units. The following graph shows the demand and supply for air conditioning units before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of air conditioning units in the absence of a tax. Then use the green point (triangle symbol) to shade the…
Suppose the demand for football tickets at a local college is QD=60,000−500P and the supply of tickets is QS=20,000. Part 2 The market equilibrium price is $8080 and the equilibrium quantity is 2000020000 tickets. (Enter your responses as whole numbers.) Part 3 Total economic surplus in this market is $enter your response here. (Enter your response as a whole number.)
The sum of consumer surplus and producer surplus in the Market is $120 If the maximum willingness to pay of the buyer is $60 and the market price is $25 Calculate the producer surplus with given information
The following Table refers to four buyers’ willingness to pay for papadums. Each buyer is willing to buy at most one papadum and no more Let the competitive market price be $4.00: calculate the total consumer surplus in the market at this price
Let D(x) =40 -4X be the proce in dollar per unit that consumer are willing to pay X unit of an item and let S(X) =6x be the price in dollar per unit producer are willing to accept for x units. The quantity x at market equilibruim is....... The consumer surplus at market equilibrium is ....
Consider a free market with demand equal to QQ = 900 − 10PP and supply equal to QQ = 20PP. Now the government imposes a $15 per unit subsidy on the production of the good. What is the consumersurplus now? The producer surplus? Why is there a deadweight loss associated with the subsidy, and whatis the size of this loss? Demonstrate in a graph.
The Australian Government believes that maintaining a viable airline industry is essential to the long term sustainability of the country’s tourism - so in order to support them in a post covid travel environment they are proposing to subsidise the purchase of tickets. The demand for tickets is given by Qd = 5000 − 10P and the supply is Qs = 2000 + 10P. (a) Solve for the equilibrium price and quantity in this market, and calculate producer and consumer surplus. (b) Suppose the government offers a $100 per ticket as a subsidy, recalculate the equilibrium price and quantity to reflect the subsidy. What will be the price paid by ticket buyers be and the price received by sellers? (c) How much will the subsidy program cost the government and what will be its net effect on the total surplus?
The market for jelly has a supply and demand given by the following: QD=200–10p QS=20p–100 (a) What is the consumer surplus and producer surplus? (b) Suppose to aid families, the government instates a price ceiling of 9. What is the resulting CS and PS. What is the deadweight loss? (c) Unhappy with the resulting shortages of jelly, the government removes the price ceiling and replaces it with a subsidy to consumers. What subsidy would be required to lower the price consumers pay to 9? (d) What is the resulting CS, PS from the subsidy? (e) How much does the subsidy cost the government? What is the DWL?