Help please The graph shows the market for wool.Draw a shape that represents the consumer surplus from wool. Label it CS.Draw a shape that represents the producer surplus from wool. Label it PS.and the producer surplus from woolConsumer surplus from wool equals $equals $The market for wool is efficient becauseO A. at the market equilibrium marginal benefit equals marginal cost, and totalsurplus is maximizedOB. the market is producing the maximum possible quantity given theconstraints on technology and capitalOC. consumer surplus is greater than zeroOD. consumer surplus is greater than producer surplus10.00-9.00-8.00-7.00-6.00-5.00-4.00-3.00-2.00-1.00-0.000Price (dollars per pound)3.00D1020 304050Quantity (pounds per day)>>> Draw only the objects specified in the question.S60F70QNext

Consumer surplus = 1/2 * (max price – equilibrium price) * equilibrium quantity = ½ * 8 * 40 = 160…

The graph shows the market for wool. Draw a shape that represents the consumer surplus from wool. Label it CS. Draw a shape that represents the producer surplus from wool. Label it PS. and the producer surplus from wool Consumer surplus from wool equals $ equals $. The market for wool is efficient because

The graph shows the market for wool. Draw a shape that represents the consumer surplus from wool. Label it CS. Draw a shape that represents the producer surplus from wool. Label it PS. and the producer surplus from wool Consumer surplus from wool equals $ equals $. The market for wool is efficient because

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 6PA: The many identical residents of Whoville love drinking Zlurp. Each resident has the following...

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The many identical residents of Whoville love drinking Zlurp. Each resident has the following willingness to pay for the tasty refreshment: a. The cost of producing Zlurp is 150, and the competitive suppliers sell it at this price. (The supply curve is horizontal.) How many bottles will each Whovillian consume? What is each persons consumer surplus? b. Producing Zlurp creates pollution. Each bottle has an external cost of 1. Taking this additional cost into account, what is total surplus per person in the allocation you described in part (a)? c. Cindy Lou Who, one of the residents of Whoville, decides on her own to reduce her consumption of Zlurp by one bottle. What happens to Cindys welfare (her consumer surplus minus the cost of pollution she experiences)? How does Cindys decision affect total surplus in Whoville? d. MayorCrinch imposes a 1 tax on Zlurp. What is consumption per person now? Calculate consumer surplus, the external cost, government revenue, and total surplus per person. e. Based on your calculations, would you support the mayors policy? Why or why not?
There are four consumers willing to pay thefollowing amounts for haircuts:Gloria: $35 Jay: $10 Claire: $40 Phil: $25There are four haircutting businesses with the following costs:Firm A: $15 Firm B: $30 Firm C: $20 Firm D: $10Each firm can give at most one haircut. To achieveefficiency, how many haircuts should be given?Which businesses should cut hair and whichconsumers should have their hair cut? How largeis the maximum possible total surplus?
Graph the PPF A B C D E F Sanitizer(y) 100 95 85 65 35 0 Rice (x) 0 5 10 15 20 25 Graph the two demand curve and mark Z the point where price is 4 and demand is 20. Price 0 1 2 3 4 5 Demand (A) 60 50 40 30 20 10 Demand (B) 24 20 16 12 8 4 Graph the demand curve and if the price is 6 please shade the consumer surplus Price 0 2 4 6 8 10 12 Demand 60 50 40 30 20 10 0 Graph the two supply curve and mark X the point where price is 6 and supply is 6. Price 0 2 4 6 8 10 Supply (A) 0 3 6 9 12 15 Supply (B) 0 2 4 6 8 10 Graph the supply curve and if the price is 3 and supply is 9 units please shade the consumer surplus Price 0 1 2 3 4 5 Supply (A) 0 3 6 9 12 15 Graph the demand and supply curve. Mark Z the equilibrium point…
Give proper Explanation of the answer Cathy is willing to pay$40for a subway and Aby is willing to pary only$35. The price of the subway is$30. Suppose Cathy manages to buy the last subway. However, for some teason, the restaurant decides to take the newly bought subway from Cathy, refund Cathy the price he paid and let Ally buy the subway at$30. a. the sum of consumer surplus and producer surplus increases. b. the producer surplus increases ic the consumer sieplus decreasets d. the consumer vurolus increases e. the produghr surplus decreases Clear my choice
Kyra buys an iPhone for $240 and gets consumersurplus of $160.a. What is her willingness to pay?b. If she had bought the iPhone on sale for $180,what would her consumer surplus have been?c. If the price of an iPhone were $500, what wouldher consumer surplus have been?
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? (3) * Add file
3. Discuss the following (Show your graphs and/or diagrams):a) Circular Flow Modelb) Consumer Surplusc) Producer Surplus
There are four consumers willing to pay the amounts for following haircuts:Gloria:$35 Jay:$10 Claire:$40 Phil:$25.There are four haircutting businesses with the following cost:FirmA:$15FirmB:$30FirmC:$20FirmD:$10.Each firm has the capacity to produce only one haircut.To achieve efficiency,how many haircuts should be given?Which businesses should cut hair and which consumers should have their hair cut?How large the maimum total surplus?
It is a hot day and Bert is thirsty. Here is the value he places on a bottle of water: Bottle of Water Value Value of first bottle $7 Value of second bottle $5 Value of third bottle $3 Value of fourth bottle $1 From this information, derive Bert’s demand schedule. Graph his demand curve for bottled water. 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. If the price falls to $2, how does quantity demand change? How does Bert’s consumer surplus change? Show these changes in your graph.
Alexis, Bruno, and Camila each want an ice-creamcone. Alexis is willing to pay $12, Bruno is willing topay $8, and Camila is willing to pay $4. The marketprice is $6. Consumer surplus equalsa. $6.b. $8.c. $14.d. $18.
The many identical residents of Whoville lovedrinking Zlurp. Each resident has the followingwillingness to pay for the tasty refreshment:First bottle $5Second bottle 4Third bottle 3Fourth bottle 2Fifth bottle 1Further bottles 0a. The cost of producing Zlurp is $1.50, and thecompetitive suppliers sell it at this price. (Thesupply curve is horizontal.) How many bottleswill each Whovillian consume? What is eachperson’s consumer surplus?b. Producing Zlurp creates pollution. Each bottle hasan external cost of $1. Taking this additional costinto account, what is total surplus per person inthe allocation you described in part (a)?c. Cindy Lou Who, one of the residents of Whoville,decides on her own to reduce her consumptionof Zlurp by one bottle. What happens to Cindy’swelfare (her consumer surplus minus the cost ofpollution she experiences)? How does Cindy’sdecision affect total surplus in Whoville?d. Mayor Grinch imposes a $1 tax on Zlurp. Whatis consumption per person now?…
The figure shows the pizza market. A) If the price of a slice of 4-point pizza is $3, what is the consumer surplus of the 50th slice? B) If the price of a slice of pizza is $3, what is the producer surplus for the 50th slice of pizza? C) What is the efficient quantity? What is the equilibrium quantity? What is the loss when the equilibrium quantity is produced?