Chapter 11, Problem 3TY

In the graph above, if the maximum price is set at P1, what area(s) represent the producer surplus after implementing this policy?   Question 15 options:   a)  Areas C+D+G   b)  Area G   c)  Areas G+D   d)  Area C   e)  Area D

A Gain from Trade occurs when a unit is sold for a price greater than the unit of the good is worth to a seller and, simultaneously, bought for a price less than the good is worth to a buyer. Consider the first 2 units of the good that would be sold in this market (the vertical red line on the graph). Which answer choices are correct?    If Kai and Mint sold one unit each to Gob and Yam at a price of $6, the trade would be mutually beneficial.    At a price of $6, Gob would benefit by $3 because she is paying $6 for a unit of the good which is worth $9 to her.   At a price of $6, Kai would benefit by $4 because she is getting $6 for a unit of the good which is worth $2 to her.   For the first 2 units of the good there is potential gain from trade of $7 for each of the 2 units.    For the first 2 units of the good sold the difference between the value to buyer and seller is $9 each. This means there is a potential gain from trade of $9 per unit.   If the first 2 units of the…

Dear tutor, please solve these True/False Questions. Thank You! Can it be efficient for one trader to consume all units of the goods while the other trader consumes nothing? In other words, does this point lie on the contract curve? A competitive equilibrium is not Pareto efficient if some members of society are unable to afford a necessary good.

In a market, the consumer surplus is 800,000 units and the producer surplus is 100,000. Which of the following statement is true? Group of answer choices The market is efficient since marginal benefit is equal to marginal cost. The market is inefficient since consumer surplus is greater than producer surplus and marginal benefit is equal to marginal cost. The market is efficient since consumer gain more than the producer. The market is inefficient since consumer surplus is greater than producer surplus.

Scenario 8-2 ​ ​ Lincoln offers to do Katelyn's housework for $80 per week. Katelyn's opportunity cost of doing housework is $100 per week, and Lincoln's opportunity cost of doing housework is $50 per week.   16. Refer to Scenario 8-2. What will be Lincoln's gain in producer surplus as a result of the proposed transaction?   a.  Lincoln will gain $20 per week.   b.  Lincoln will gain $30 per week.   c.  Lincoln will gain $40 per week.   d.  Lincoln will gain $50 per week.

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 Quantity

Show full solutions of the following Identify and interpret the opportunity costs values for Nation 1 and Nation 2. Find the Autarky Equilibrium quantities of production/consumption for Nation 2. What is the value of utility at the equilibrium in (2)?

Determine whether the following statements is true or false, and explain why. The consumers’ surplus and the producers’ surplus equal each other.

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?