What is the consumer surplus?A) $40 millionB)$50 millionC)$60 milliond)$70 million Base of trianglexHeight of triangleCS =2.The market price changes from $50 to $75. When the price is at $75, what is the consumersurplus?Price $125100ConsumerSurplusPMARKET = $75LostConsumer Surplus5025Dmarket406080Quantity sold (in millions)20

Actual market price =$ 75 Consumer willings to pay= $125

Answered: What is the consumer surplus? A) $40…

Business

Economics

What is the consumer surplus? A) $40 million B)$50 million C)$60 million d)$70 million

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 9QR

See similar textbooks

Related questions

Q: The difference between consumer surplus and producer surplus

A: Economics, as a subject, deals with the allocation of scarce resources among humans with unlimited…

Q: The demand and supply functions for Penn State ice hockey jerseys are: pd(x)=x²-15x + 545 p=s(x) =…

A: Equilibrium refers to the point where demand intersects the supply.

Q: Find Maximum willingness to pay if consumer surplus is $20 and market price is $23

A: The information being given is:- Consumer surplus = $20 Market price = $23 Maximum willingness to…

Q: Refer to Question 4c. The total surplus for theater movies is $_____. Do not forget to round to…

A: 4c. total surplus for theatre movies = Producer surplus + consumer surplus = 30000 + 45000 = 75000

Q: Demand curve P = 300 - 0.25Q. Supply curve , P = $20 Total stock = 1000 barrels. Calculate the…

A: The consumer surplus is the measurement of the benefit that a consumer gain after purchasing the…

Q: Calculate the Consumer surplus for 28 liras in a market with the demand function, p = - (q + 2) 2 +…

A: The difference between the price that customers pay and a particular price that they are willing to…

Q: FIGURE 4-5 Maximum allowed price D Quantity of Gasoline Refer to Figure 4-5. What is occurring in…

A: Price floor is legal minimum price that can be charged for a good whereas price ceiling is a legal…

Q: P. Supply 4. Demand 40 80 120 160 A Refer to the graph above. When the market is in equilibrium,…

A: (A) When market is in equilibrium, then Consumer surplus(CS) is-CS=12(8-4)(80-0) =12(4)(80)…

Q: Which of the following statements is correct? A) An increase in price decreases consumer surplus. B)…

A: Demand curve shows quantity demanded by consumers at various prices. Its slopes downward and it…

Q: The aggregate demand for good X is Q = 20 P. If the price rises from P = $4 to P = $5, what is the…

A: In microeconomics, the consumer surplus is the benefit or gain that customers get hold of from the…

Q: The demand function for a certain kind of laptop is given by p = 600e-0.04x where p is the unit…

A: We are going to find the consumer surplus to answer this question.

Q: Present your solutions neatly and orderly. 1) Assume that the inverse demand and supply function for…

A: Inverse demand function = P = 6000 / (q+50) Supply function: P = q + 10 Equilibrium where demand =…

Q: f the market price of a good decreases, the quantity demanded will Multiple Choice decrease…

A: Demand curve shows different combinations of price and quantity demanded.

Q: The area between the supply curve and the price (or, to be more accurate, a horizontal line…

A: The downward-sloping curve that shows a consumer's maximum willingness to pay for a product is…

Q: When quantity supplied and quantity demanded are equal, consumer surplus is equal to

A: Consumer surplus is computed as the difference between the maximum price that a potential consumer…

Q: Calculate total surplus in a market where consumer surplus is $30 and the producer surplus is $43

A: The data presented in the question above is:- Consumer surplus = $30 Producer surplus = $43 We have…

Q: The consumer surplus is $25 and the market price is $40 Find the maximum willingness to pay of…

A: The data presented in the question above is:- Consumer surplus = $25 Market price = $40 Maximum…

Q: If the price of the good in the market below increases from $1.50 to $2.50, what is the change in…

A: Consumer surplus is the area above the price line and under the demand curve. At the price of…

Q: The consumer surplus is negative when: a. The customer's maximum willingness-to-pay is below the…

A: The consumer surplus in the market is refferd to be as the difference between tye maximum…

Q: A consumer is willing to purchase an item for $30 but he gets item at a market price of $22.…

A: # There is a situation where the consumer has a more willingness to pay for a good then for what he…

Q: If we know that the demand function of a product is Qd-100-P, where P is the price per product…

A: Consumer surplus is the difference between the price a consumer is willing to pay and the actual…

Q: ___________ surplus is the difference between the maximum price a consumer is (or consumers are)…

A: Consumer surplus refers to the difference between the total amount a consumer is willing to pay the…

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: Find the consumers' surplus at a price level of p = $130 for the price-demand equation below. p=…

Q: A market has demand given by P = 35-4Q. If the market price is $15, what is consumer surplus? $100…

A: "A consumer surplus occurs when buyer of the product pay less price for that product than his/her…

Q: A "Spider-man" DVD is worth $30 to Marcus. But he buys one on sale for just $15. What is the…

A: The value of the DVD would be the total value of the DVD which would result in the total value…

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

A: Demand function depicts quantity demanded as a function of prices whereas inverse demand function…

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: In the market for energy drinks, with no market frictions, so there is no deadweight loss. The…

A: Given information; The equilibrium price of energy drinks is $4, The equilibrium quantity of energy…

Q: Calculate consumer surplus if maximum willingness to pay is $400 and Market price is $360

A: Given information: Maximum willingness to pay= $400 Market price= $360 To find: consumer Surplus

Q: Consumer surplus is largest in

A: The markets are the place where the buyers of goods, services, and other products meet, and interact…

Q: Consumer surplus is a measure of the difference between:

A: A surplus is the amount of something or a resource that isn't being used. Surpluses include things…

Q: When a market is in equilibrium, the total amount of consumer surplus must be--------- the total…

A: Consumer surplus: The consumer surplus means the consumer is willing and able to pay for the goods…

Q: Find the consumer surplus and producer surplus. Demand p= 100-0.00006x Supply p= 90+0.00004x

A: Consumers surplus is the difference between the maximum price a consumer is willing to pay and the…

Q: The demand function in an economy is P=74-Q^2 and equilibrium price is 2 and equilibrium quantity is…

A: The demand Function, P = 74 – Q2 Equilibrium price = 2 Equilibrium quantity (Q) = 4

Q: Why does producer surplus arise? Consumers buy less of some commodities than they need. Sellers'…

A: Consumer and producer surplus are generated when goods and services are exchanged between buyers and…

Q: Total surplus in this market is $ million.

A: Total Surplus = Consumer Surplus + Producer Surplus

Q: The supply curve for product X is given by QXS = -400 + 10PX .a. Find the inverse supply curve.P =…

A: QXS =…

Q: Please in a simple explanation, describe and or explain elasticity, consumer surplus and producer…

A: Elasticity can be evaluated as the proportion of the rate change in one variable to the rate change…

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: If producers surplus is $33 and the consumer surplus is $12 Find total surplus

A: The data presented in the question above is:- Producer surplus = $33 Consumer surplus = $12 Total…

Question

What is the consumer surplus? A) $40 million B)$50 million C)$60 million d)$70 million

Base of trianglexHeight of triangle
CS =
2.
The market price changes from $50 to $75. When the price is at $75, what is the consumer
surplus?
Price $125
100
Consumer
Surplus
PMARKET = $75
Lost
Consumer Surplus
50
25
Dmarket
40
60
80
Quantity sold (in millions)
20

Consumer’s gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price and up to the equilibrium quantity. Consumer surplus is represented by area A.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is consumer surplus? How is it illustrated on a demand and supply diagram?
answer please the last 2 sub questions The estimated demand for Canadian Processed Pork is given byQD = 171 − 20p + 20pB + 3pC + 2Ywhere QD is the quantity of pork demanded (millions of kg), p is the dollarprice per kg, pB is the price of beef per kg, pC is the price of chicken perkg, and Y is average consumer income in thousands of dollars. The supplyfor this market is given byQS = 178 + 40p − 60pB(a) According to the equations, what is the effect of an increase of pCon the market for pork? Specifically, which curve will shift, in whatdirection does the curve shift, and how will the equilibrium priceand quantity change (increase/decrease). On a corresponding graphof the supply and demand, draw the shifting curve and change inequilibrium. Note that no specific numbers are required here. Justthe direction of change.(b) Use the equations to solve for the equilibrium price of pork and quantity of pork as functions of the exogenous variables pB, pC , and Y .These will be linear…
Use graphs to demonstrate the effect of ashift in supply or demand, and describe what causesthese curves to shift
what are the determinants of the produce surplusin a market ?how does it increse depend on the determination ?
Need answer asap. Consumer surplus? A limited edition package is sold only to 200 customers for $130 each. The average value of the package for the 200 customers is $280.
If a 10% decrease in the price of one product thatyou buy causes an 8% increase in quantity demandedof that product, will another 10% decrease in the pricecause another 8% increase (no more and no less) inquantity demanded?
. It is a hot day, and Bert is thirsty. Here is the value heplaces on each bottle of water:Value of first bottle $7Value of second bottle $5Value of third bottle $3Value of fourth bottle $1a. From this information, derive Bert’s demandschedule. Graph his demand curve for bottledwater.b. If the price of a bottle of water is $4, how manybottles does Bert buy? How much consumersurplus does Bert get from his purchases? ShowBert’s consumer surplus in your graph.c. If the price falls to $2, how does quantitydemanded change? How does Bert’s consumersurplus change? Show these changes in yourgraph.
Choose one from the given options. When income rises by 10%, the demand for Good A rises by 20%. From the above, we knowGood A isa normal gooda complementan inferior gooda substitute
Chapter 2 Problem #5. Suppose the demand and supplycurves for a product are given by QD= 500 −2PQS=−100 + 3Pa. Graph the supply and demand curves.b. Find the equilibrium price and quantity.Qd= Q3500-2P= -100+3PP= Pe = 120 & Qe=260The equilibrium price is $120 and the quantity is 260c. If the current price of the product is $100, what is thequantity supplied and the quantity demanded? How would you describe thissituation, and what would you expect to happen in this market?d. If the current price of the product is $150, what is thequantity supplied and the quantity demanded? How would you describe thissituation, and what would you expect to happen in this market?e. Suppose that demand changes to QD= 600 â€“ 2P.Find the new equilibrium price and quantity, and show this on your graph.***PLEASE SHOW ALL EQUATIONS AND METHODS,
Suppose that you have information indicating that the price of steel (an important input ofproduction in the auto industry) has doubled during the past few months. Show howthis economicshock will influence the market for American made cars and give your predictions for equilibriumprice and sales change.
Ernie owns a water pump. Because pumping largeamounts of water is harder than pumping smallamounts, the cost of producing a bottle of waterrises as he pumps more. Here is the cost he incurs toproduce each bottle of water:Cost of first bottle $1Cost of second bottle $3Cost of third bottle $5Cost of fourth bottle $7a. From this information, derive Ernie’s supplyschedule. Graph his supply curve for bottledwater.b. If the price of a bottle of water is $4, how manybottles does Ernie produce and sell? How muchproducer surplus does Ernie get from thesesales? Show Ernie’s producer surplus in yourgraph.c. If the price rises to $6, how does quantity suppliedchange? How does Ernie’s producer surpluschange? Show these changes in your graph
vSuppose that supply and demand for a certain commodity are described by the supply curve, p=0.0001q+0.005 , and demand curve, p=-0.002q+62.00 . Determine the quantity of the commodity that will be produced and the selling price.