Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134643175
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 13E
(a)
To determine
The demand curve.
(b)
To determine
The number of people who would use the bridge when there is no toll.
(c)
To determine
The reduction in
(d)
To determine
Change in toll revenue.
(e)
To determine
The reduction in consumer surplus.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The cookie demand curve slopes downward. When the price of cookies is $ 2, the quantity demanded is 100. If the price increases to $ 3, what happens to the consumer surplus?
Janice is willing to pay $100 for the first pair of shoes, $80 for the second pair, $50 for a third, and $30 for a fourth. If shoes cost $50, Janice will buy _____ pairs of shoes and her total consumer surplus will equal _______.
Suppose that the price of a ride is $12. Then Angela buys 8 rides a month. Suppose her demand curve is P = 40-2Q. Then how much is her consumer surplus in a month?
Chapter 4 Solutions
Microeconomics, Student Value Edition Plus MyLab Economics with Pearson eText -- Access Card Package (9th Edition) (Pearson Series in Economics)
Ch. 4.A - Prob. 1ECh. 4.A - Prob. 2ECh. 4.A - Prob. 3ECh. 4.A - Prob. 4ECh. 4.A - Prob. 5ECh. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Prob. 5RQ
Ch. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 8RQCh. 4 - Prob. 9RQCh. 4 - Prob. 10RQCh. 4 - Prob. 11RQCh. 4 - Prob. 12RQCh. 4 - Prob. 1ECh. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - Prob. 4ECh. 4 - Prob. 5ECh. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Judy has decided to allocate exactly 500 to...Ch. 4 - The ACME Corporation determines that at current...Ch. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 13ECh. 4 - Prob. 14ECh. 4 - Prob. 15ECh. 4 - Prob. 16E
Knowledge Booster
Similar questions
- The standard measure of consumer surplus is a fair measure of the value of a good to consumers because it gives an equal weight to each individual consumer.” Is this statement true, false, or uncertain?arrow_forwardSuppose that the market demand curve for a good is given by D=80-2P-2I, where D is the quantity demanded, P is the price of the good, and I is consumer income in thousands of dollars. The good is a divisible good. The supply curve is given by S = 3P, where S is the quantity supplied. Assume that I = 15. (a) (10 points) How many units of the good are demanded with P = $4? (b) (10 points) Compute the size of a consumer surplus at P = $4. (c) (10 points) Derive the equilibrium price of the good.arrow_forwardAs gasoline prices go up, in the long run, people are more likely to turn to renewable fuelsWhen the demand for goods X is elastic, then increasing the price of goods X as a strategy to increase income is the right strategy when the price in the store drops to Rp. 50, does the total consumer surplus drop to under Rp. 60? True or false?arrow_forward
- The rent on an apartment in a particular building near campus is $1,200 per month. If Min would be willing to pay up to $1,400, Genevieve would be willing to pay up to $1,500, Fraser would be willing to pay up to $1,600, and Kayden would pay no more than $1,000, what is the consumer surplus for this group of students who would like to live in the building? Explain how you calculated this consumer surplusarrow_forwardConsumer surplus is calculated by taking the difference of the price consumers are willing to pay and the price actually paid. When the price is $4, the consumer would buy only two bottles because the value the consumer would get from the first bottle is $7. This implies, the surplus is $3. Similarly for the second bottle, the value the consumer would get from consuming it is $5 where the price the consumer will pay is $4, this implies the surplus is $1. Lastly, for the third bottle the value is $3 and the price is $4 so the price surpasses the value, therefore the consumer will not consumer beyond two bottles. The consumer surplus could be calculated as: Consumer Surplus = (7-4) + (5-4) = 3 + 1 = 2 This means the consumer will buy two bottles. If the price falls to $2, the consumer would only buy three bottles because the value the consumer gets from the first bottle valued at $7 versus the $2 paid implies a consumer…arrow_forwardwill a consumer buy a good if his consumer surplus is zero?arrow_forward
- Each customer's willingness to pay for a designer scarf is presented in the table below. Name Willingness to Pay Tara $2,000 Zil 1,800 Ara 1,600 Emily 1,000 Robert 500 If the price of a scarf decreases from $1,800 to $1,000, total consumer surplus will increase, in numerals, by $_____.arrow_forwardSuppose the market for rum can be described by the following equations: Demand: P= 10- Q, Supply: P= Q - 4, where P is the price in US dollars per unit and Q is the quantity in thousands of units. Then: 2) suppose the government imposes a tax of $1 per unit to reduce rum consumption and raise government revenues. a) what will be the new equilibrium quantity be? b) what price will the buyer pay? c) what amount per unit will the seller recieve?arrow_forwardWhat is the consumer and producer surplus when the price of penicillin remain the same when both supply and demand curve shift to the right?arrow_forward
- What is the consumer surplus and unmet demand in equilibrium if: Q=D(p)=1676−16pQ=D(p)=1676-16p, p > 0 Let the market supply of widgets be given by: Q=S(p)=−4+8pQ=S(p)=-4+8p, p > 0arrow_forwardJoe mows lawns in his neighborhood for extra money. Suppose the demand for lawn mowing in Joe's neighborhood is: Qd = 46 - 2P and that the supply of lawn mowing (Joe's willingness to mow lawns) is: Qs = -14 + P The market-clearing price of lawn mowing is $20 and the market clearing quanitiy is 6. What is the corresponding consumer surplus? arrow_forwardA consumer who only consumes x and y has tastes that can be described by the utility function u(x,y)=(x^0.8)(y^(1-0.8)) and income of 1,254. The price of good x is 5.7 and the price of good y, a composite good, is 1. When a distortionary tax on good x increases its price to 9.5, the deadweight loss is ___. (Round your answer to two decimal points.)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc