uppose that the demand and supply functions are P=10-Q and P=Q respectively. Which of the following statements are correct for the value of consumer and producer surplus in the equilibrium? Select one or more: a. The value of producer surplus is 25. b. The value of consumer surplus is 15. c. The value of consumer surplus is 12.5. d. The value of producer surplus is 15. e. The value of consumer surplus is 25. f. The value of producer surplus is 12.

uppose that the demand and supply functions are P=10-Q and P=Q respectively. Which of the following statements are correct for the value of consumer and producer surplus in the equilibrium? Select one or more: a. The value of producer surplus is 25. b. The value of consumer surplus is 15. c. The value of consumer surplus is 12.5. d. The value of producer surplus is 15. e. The value of consumer surplus is 25. f. The value of producer surplus is 12.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter4: Prices: Free, Controlled, And Relative

Section: Chapter Questions

Problem 4WNG

See similar textbooks

Similar questions

There are six potential consumers of computer games, each willing to buy only one game. Consumer 1 is willing to pay $40 for a computer game, consumer 2 is willing to pay $35, consumer 3 is willing to pay $30, consumer 4 is willing to pay $25, consumer 5 is willing to pay $20, and consumer 6 is willing to pay $15. Suppose the market price is $29. What is the total consumer surplus? The market price decreases to $19. What is the total consumer surplus now? When the price falls from $29 to $19, how much does each consumer’s individual consumer surplus change? How does total consumer surplus change?
When a market is in equilibrium, the total amount of consumer surplus must be--------- the total amount of producer surplus. 1)equal to 2)larger than 3)less than 4)none of these
Suppose the demand and supply curves for good X are both linear. The demand price for the first unit of X is $28, and the supply price for the first unit of X is $6. If the equilibrium price for good X is $16 and the equilibrium quantity of X is 24,000 units, then total consumer surplus is ________, total producer surplus is ________, and total social surplus is ________. $144,000; $120,000; $264,000 $144,000; $672,000; $384,000 $120,000; $144,000; $264,000 $28; $6; $16 $672,000; $144,000; $384,000
Which of the following statements is correct? Select one: a. Consumer surplus can be high for a low-priced good and low for a high priced good. b. Consumer surplus is always greater than producer surplus. c. The price of water is low relative to that of cars because the government provides water at affordable prices for households as a public service. d. The price of a good reflects its value to the consumer.
Question 1 The table below shows the marginal costs of the last croissant produced by four different bakeries. Assume that any bakery willing to sell croissants at the market price sells 100 croissants and that all bakeries have the same costs. How much producer surplus is earned in this market at a price of $3.00 Question 1 options: a) $100 b) $0 c) $1 d) $75 e) $200 Question 2 Use the graph below to answer the following question: What happens to consumer surplus if the price decreases from $8 to $5? Question 2 options: a) It increases by $18 b) It increases by $3 c) It increases by $21 d) It remains constant at $25 e) It…
Can you help me with this please? If there is a surplus of goods in the market would that still lead to a producer surplus? Producer surplus being defined as the amount a seller is paid for a good minus the sellers cost of providing it.
Question 10 Consumer surplus for a particular unit sold is equal to which of the following? Question 10 options: a) The vertical distance between price and the demand curve. b) The vertical distance between the demand curve and the supply curve. c) The vertical distance between price and the supply curve. d) The vertical distance between the demand curve and the x-axis. e) The vertical distance between the supply curve and the x-axis. Question 11 In a graph, market producer surplus is equal to what area? Question 11 options: a) The area below the demand curve but above price. b) The area between the demand and supply curves. c) The area below the demand curve but above the x-axis.…
Consider a free market with demand equal to Q = 800 − 10P and supply equal to Q = 10P. What is the value of consumer surplus? What is the value of producer surplus?
Answer questions as either True or False. If the answer is false, explain why it is false. Question 6 Consumer surplus is the area above the demand curve but below price. Question 7 The producer surplus for a particular unit is equal to the vertical distance between price and the supply curve. Question 8 Social efficiency is an allocation of resources in which consumer and producer surplus are equal. Question 9 A deadweight loss results when resources are allocated in an unequal manner.