Use the graph below to find the value of consumer surplus and producer surplus. $15.00 S $5.00 200 What is the value of Consumer Surplus? Please enter your answer as whole dollar amounts with no decimals and do not type in your answer as words. (ie. $4000 not $4000.00 or "Four thousand dollars"). What is the value of Producer Surplus? Please enter your answer as whole dollar amounts with no decimals and do not type in your answer as words. (ie. $4000 not $4000.00 or "Four thousand dollars"). What is the value of Total Surplus? Please enter your answer as whole dollar amounts with no decimals and do not type in your answer as words. (ie. $4000 not $4000.00 or "Four thousand dollars"). ----

Use the graph below to find the value of consumer surplus and producer surplus. $15.00 S $5.00 200 What is the value of Consumer Surplus? Please enter your answer as whole dollar amounts with no decimals and do not type in your answer as words. (ie. $4000 not $4000.00 or "Four thousand dollars"). What is the value of Producer Surplus? Please enter your answer as whole dollar amounts with no decimals and do not type in your answer as words. (ie. $4000 not $4000.00 or "Four thousand dollars"). What is the value of Total Surplus? Please enter your answer as whole dollar amounts with no decimals and do not type in your answer as words. (ie. $4000 not $4000.00 or "Four thousand dollars"). ----

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 5P

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Similar questions

Refer to the figure below. What is the consumer surplus generated at a price of $150 per game console? Instructions: Use the tool provided “CS” to illustrate this area on the graph. Consumer surplus: $ ____ What is the producer surplus generated at a price of $150 per game console? Instructions: Use the tool provided “PS” to illustrate this area on the graph. Producer surplus: $ ____ e. What is total economic surplus at a price of $150 per game console? Economic surplus: $ _____ f. What is the economic surplus generated if the market were in equilibrium? Instructions: Use the tool provided “ESeq” to illustrate this area on the graph. Economic surplus in equilibrium: $ ______
Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Statement Consumer Surplus Producer Surplus Neither I sold a used laptop for $140 on eBay last week. This week, someone offered me $30 for it. Even though I was willing to pay up to $47 for a used textbook, I bought a used textbook for only $42. I sold a jersey sweater for $35, even though I was willing to go as low as $25 in order to sell it.
What is the value of consumer surplus? What is the value of producer surplus?
1) Complete the first two rows of the following table by indicating which areas on the graph represent consumer surplus and producer surplus prior to the shift in supply. Then complete the second two rows by indicating which areas on the graph represent consumer surplus and producer surplus after the change in production costs. Check all that apply. A B C D E F G Initial Consumer Surplus Initial Producer Surplus New Consumer Surplus New Producer Surplus 2) True or False: Consumers are hurt most by rising production costs when the supply of silverware is very elastic. True False
What is producer surplus? How is it illustrated on a demand and supply diagram? Give an example of producer surplus.
Use the following diagram to calculate total consumer surplus at a price of $12 and production of 500 thousand flu vaccinations per day. for the same equilibrium, calculate total producer surplus. Assuming price remained at $12 but production was cut to 200 thousand vaccinations per day, calculate producer surplus and consumer surplus. Calculate the deadweight loss from underproduction.
Here’s a quick problem to test whether you really understand what producer surplus and consumer surplus mean, rather than just relying on the geometry of demand and supply. For each of the two diagrams that follow, calculate producer surplus, consumer surplus, and total surplus. Assume the curves are perfectly vertical and perfectly horizontal.
Determine whether the following statements is true or false, and explain why. The consumers’ surplus and the producers’ surplus equal each other.
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…
In the shopping center nearby, you saw an organic grocery store that barely sells any goods in a day. You are pretty sure the business is not making any profits. 1) Why do the stores stay open? Explain briefly 2) If what happens in this organic grocery store is a common observation in the market, in the long run, what will happen to the supply of organic grocery and the price? Use a supply and demand diagram to show how that response will change the combined amount of consumer surplus and producer surplus in the market.
Don't use pen or paper Suppose market demand and supply are characterized by the following equations: p = 12 - 0.4 Qd p = 2 + 0.4 Qs When the market clears, what is the economic surplus? (Round your answer to one decimal place.)
Illustrate and explain what is meant by consumer surplus and producer surplus at market equilibrium..