The market for French champagne in a small village consists of two consumers: Antoine and Bruce. Antoine's monthly demand curve is: A = 20-0.1p. for p < 200 and 4 = 0 for p > 200 Bruce's monthly demand curve is] 2 = 10-0.2p. for p < 50 and zB =0 for p > 50 What is monthly aggregate consumer surplus if the village government imposes a $10 per bottle tax on French champagne, which raises the price at which the consumers can buy French champagne to p = 30? O $1050 O $630 O $2115 O $1485
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- Suppose that the market demand curve for a good is given by D=80-2P-2I, where D is the quantity demanded, P is the price of the good, and I is consumer income in thousands of dollars. The good is a divisible good. The supply curve is given by S = 3P, where S is the quantity supplied. Assume that I = 15. (a) (10 points) How many units of the good are demanded with P = $4? (b) (10 points) Compute the size of a consumer surplus at P = $4. (c) (10 points) Derive the equilibrium price of the good.The rent on an apartment in a particular building near campus is $1,200 per month. If Min would be willing to pay up to $1,400, Genevieve would be willing to pay up to $1,500, Fraser would be willing to pay up to $1,600, and Kayden would pay no more than $1,000, what is the consumer surplus for this group of students who would like to live in the building? Explain how you calculated this consumer surplusThe demand curve for product X is given by QXd = 340 − 4PX.a. Find the inverse demand curve. Instruction: Enter all values as integers, or if needed, as a decimal. PX = ___ − ___ QXdInstructions: Enter your responses to the nearest penny (two decimal places).b. How much consumer surplus do consumers receive when Px = $45?$ c. How much consumer surplus do consumers receive when Px = $30?$ d. In general, what happens to the level of consumer surplus as the price of a good falls?The level of consumer surplus _____ as the price of a good falls
- Supply and Demand Q1 Assume that the demand curve D(p) given below is the market demand for apples: Q=D(p)=280−20pQ=D(p)=280-20p, p > 0 Let the market supply of apples be given by: Q=S(p)=48+9pQ=S(p)=48+9p, p > 0 where p is the price (in dollars) and Q is the quantity. The functions D(p) and S(p) give the number of bushels demanded and supplied. What is the consumer surplus at the equilibrium price and quantity? Round the equilibrium price to the nearest cent, use that rounded price to compute the equilibrium quantity, and round the equilibrium quantity DOWN to its integer part.Maintain full precision for the vertical intercept by carrying the full fraction into your consumer surplus calculation.Please round your consumer surplus answer to the nearest integer.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_____A study of a country's colleges and universities resulted in the demand equation q = 20,000 − 2p, where q is the enrollment at a public college or university and p is the average annual tuition (plus fees) it charges.† Officials at Enormous State University have developed a policy whereby the number of students it will accept per year at a tuition level of p dollars is given by q = 5,200 + 0.5p. Find the equilibrium tuition price p and the consumers' and producers' surpluses at this tuition level. What is the total social gain at the equilibrium price? HINT [See Example 3.] equilibrium tuition price p = $ consumers' surplus CS = $ producers' surplus PS = $ total social gain $
- A study of a country's colleges and universities resulted in the demand equation q = 20,000 − 2p, where q is the enrollment at a public college or university and p is the average annual tuition (plus fees) it charges.† Officials at Enormous State University have developed a policy whereby the number of students it will accept per year at a tuition level of p dollars is given by q = 10,000 + 0.5p. Find the equilibrium tuition price p and the consumers' and producers' surpluses at this tuition level. What is the total social gain at the equilibrium price? equilibrium tuition price p = $ consumers' surplus CS = $ producers' surplus PS = $ total social gain $In the graph above, if the maximum price is set at P1, what area(s) represent consumer surplus after implementing this policy? Question 13 options: a) Area A b) Areas A+B c) Areas A+C d) Areas A+B+C e) Areas A+B+C+D QuantityAllen tutors in his spare time for extra income. Buyers of his service are willing to pay $40 per hour for as many hours Allen is willing to tutor. On a particular day, he is willing to tutor the first hour for $10, the second hour for $18, the third hour for $28, and the fourth hour for $40. Assume Allen is rational in deciding how many hours to tutor. His producer surplus is
- Suppose that at the equilibrium price of $50, the equilibrium quantity is 400 units and consumer surplus is $8,000. If the equilibrium price falls to $40 and the equilibrium quantity increased to 450 units then consumer surplus increases by $4,500. Is this true? Show all the calculationsQuestion 39 You are considering buying a monthly metro pass for the subway at $100 or paying $4 per ride (Pd). Your monthly demand curve is Pd = 60-2Qd where Qd is the number of rides per month. Given this information, your consumer surplus will be $784 buying each ride and $800 with the monthly pass. $600 buying each ride and $700 with the monthly pass. $784 buying each ride and $750 with the monthly pass. $750 buying each ride and $900 with the monthly pass.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.