This question doesn’t involve any numerical calculation. The USDA considers investing in R&D to make production less costly. The supply function of Cabbage is perfectly elastic.   a. Draw the supply and demand for cabbage in the market before and after the investment in R&D. b. Mark with letters (A, B, C, D, …) the relevant intersections of the supply and demand curves and indicate what is the consumer surplus, what is the producer surplus, and what is the social surplus.

Q: If the market demand for a product shifts to the right (parallel to the first demand curve), which…

A: When there is rightward shift in the demand curve for a product, there would be an increase in the…

Q: The table below shows the marginal costs of the last croissant produced by four different bakeries.…

A: Each  bakery is ready to sell the 100 units of the good. So the produce surplus of a bakery will be…

Q: Price Total cost Quantity (tickets per (dollars per ticket) (dollars per show) show) 20 1,000 18 100…

A: Market equilibrium generally happens normally and it is essential to control the organic market to…

Q: There are four potential suppliers of personal massages: Chen, Mark, Lee and Dan are each willing to…

A: Economic Surplus is the sum of both consumer and producer surplus. The objective of the producer is…

Q: Consumers will be affected if the government imposes a tax on apples because Group of answer choices…

A: In this question we talk about consumers hence, the answer should involve consumers loss only. We…

Q: ppose the market condition for good X is characterized by an inelastic supply curve and a…

A: The demand shows the ability and willingness of consumers to buy a good. The supply shows the…

Q: The price of a shirt is $20. Charlie can produce a shirt at a marginal cost of $10, Mac can produce…

A: Given information Price of shirt=$20 There are 3 producer For Charlie marginal cost of shirt=$10 For…

Q: Demand A ATC MC MR Quantity of Sparkle Toothpaste Indicate which of the labeled areas represent…

A: Consumer surplus is the area below the downward-sloping demand curve that is the consumer is willing…

Q: A company raises its cost per unit while also increasing its producer surplus per unit. Which of the…

A: A firm raises its cost per unit and also increases the producer surplus per unit. The consumer's…

Q: Cotton is used to produce t-shirts. If the price of cotton increases, consumer surplus in the…

A: Answer: Correct option: c (decrease) Explanation: Cotton is used to produce t-shirts. So cotton is…

Q: If marginal benefit is equal to marginal cost, then the A) producer surplus is equal to the consumer…

A: Answer: Equilibrium in a market occurs where the marginal benefit is equal to the marginal cost. It…

Q: what is the producer surplus?  (Assume that Nabisco CANNOT sell partial packs of Oreos.)

A:

Q: Consumer surplus plus producer surplus equals O a) tax revenue. O b) economic profit. Oc) market…

A: Consumer surplus refers to the area above the price and below the demand curve. Producer surplus…

Q: Producer surplus is a. The difference between the marginal benefit of consuming the good and the…

A: Producer surplus refers to the difference between the potential price that a producer intended to…

Q: Q1) for a-firm how does the concept of producer surplus differ from that of profit.?

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Producer surplus is measured using the demand curve for a good. always a negative number for sellers…

A: Generation by market prices being in excess of the lowest price level producers would, in turn, be…

Q: The demand curve for tickets to concert is given as follows: Q = 20 - P.  At a price of €5, what is…

A: Consumer surplus: Consumer surplus can be defined as a state where the market price for the…

Q: Producer surplus measures: A.     The same thing as a market or quantity surplus B.      The…

A: ANS The producer surplus (PS) is obtained by subtracting the price level at which the producer…

Q: Consumer surplus exists when a A) person buys something with a marginal benefit more than what they…

A: Consumer surplus can be understood when the consumer willingness to pay is higher than the actual…

Q: Total surplus is elect one: a.always smaller than producer surplus. b.the total value of the good to…

A: Total surplus is the summation of consumer surplus and producer surplus.

Q: Jennifer buys a piece of costume jewelry for $10, for which she was willing to pay $12. The minimum…

A: The demand for the goods, and services comes from the consumers who pays for those goods, and…

Q: Consumer surplus exists when A) consumers value the good more highly than what they must pay to buy…

A: Marginal benefit is the demand curve. It is equal to price at equilibrium. Marginal cost is the…

Q: PRICE (Dollars per phone) 150 135 120 105 90 75 60 45 30 15 0 Demand Supply 80 100 120 140 160 180…

A: "Demand curve indicates a negative relationship between price of the product and quantity demanded…

Q: What is producer surplus?   Question 10 options:   The unsold quantity of goods at the end of the…

A: Supply curve shows different combinations of quantity that can be supplied at different prices.

Q: Which of the following events would decrease producer surplus? Sellers' costs stay the same and the…

A: Producer surplus is defined as total revenues less total costs. It is the total benefit, producer…

Q: The demand curve for product X is given by Qxd = 300 - 2Px. a. Find the inverse demand curve.…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Use the ideas of consumer surplus and producer surplus to explain why economists say competitive…

A: Consumer surplus(CS) is the total area under the demand(DD) curve and above the price(P) level.…

Q: In a perfectly competitive market for a good with a downward sloping demand curve and an upward…

A: The measure that depicts benefits or costs that are not being not received or incurred financially…

Q: The market supply and demand for a product are shown in the diagram below. Is the price elasticity…

A: Since you posted multiple questions, we will provide the answer for first three questions.

Q: How many families will want to buy a steer and sell their steer in one year? Calculate the village…

A: 70 invest in bond gives 90 in 1 year, If all villagers invest in the bond then the total investment…

Q: Draw the Supply and Demand Curves for the following schedule: Supply: There are six suppliers with…

A: The information can be tabulated as follows Price Supply Price Demand $ 12 6 $ 50 10 $ 36 6 +…

Q: Explain the origin of both consumer surplus and producer surplus and explain how properly…

A: When economy is getting as much benefit as possible using its scarce resources and all the possible…

Q: If demand is P - 80 - 2Q and supply is P = 20 +3Q, what is the value of the Consumer Surplus? Enter…

A: The demand function shows the relationship between quantity demanded and price. The demand curve is…

Q: Assume the equations for supply and demand for Old Town Canoes (a type of boat) are: Demand: P-64-2Q…

A: Since you have asked multiple-part questions, we will only solve the first three questions for you.…

Q: Due to Government's step the new demand curve and price curve will revert back to its original state…

A: The graph below represents how the government's step the new demand curve and price curve will…

Q: Efficiency loss refers to: O the situation where the maximum willingness to pay for a product is…

A: In demand supply model, the efficient point is the point where the maximum willingness to pay for a…

Q: Assume competitive markets (price are given) and that the supply is more inelastic than demand.…

A: Consumer surplus is the difference between what the consumer expected to pay and what he actually…

Q: Type your answers in all of the blanks and submit A binding price floor set at $3.50 per gallon…

A: Since you have asked multiple question, we will solve question 4.6 for you. If you want any specific…

Q: The demand curve for cookies is downward-sloping. When the price of cookies is $2, the quantity…

A: The demand curve shows the association between the amounts of a good or service demanded at each…

Q: In a market, the consumer surplus is 800,000 units and the producer surplus is 100,000. Which of the…

A: Here, it is given that at the market operating output level, consumer surplus is 800,000 and…

Q: Consider the accompanying supply and demand graph. 9. 8- What is the value of consumer surplus? 7-…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Explain how buyers’ willingness to pay, consumer surplus, and the demand curve are related

A: Buyers willingness to pay is the maximum price that the consumer is willing to forgo in order to…

Q: ) In the market for second hand cars, when the phenomenon of 'adverse selection' occurs this…

A: Adverse selection is a situation when the sellers possess information about some aspect of product…

Q: he following diagram shows supply and demand in the market for smartphones.   Use the black point…

A: ‘Equilibrium’ refers to the situation where quantity(Q) demanded equals quantity(Q) supplied. The…