(a) Consumer Surplus

Question

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Answer 1

Question

Chapter 4, Problem 1P

To determine

(a)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer surplus

Explanation of Solution

Leon willingness to pay is upto $10. Price of T-shirt is exactly $10. So, no consumer surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

To determine

(b)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer Surplus

Explanation of Solution

Since Albert is willing to pay $30 for a used copy of Nirvana's greatest Hits and the copy of it is being sold at $30, there is no consumer surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

To determine

(c)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer Surplus

Explanation of Solution

There is no action of buying an d selling of mineral water between Stacey and 7-Eleven as Stace is willing to pay only $2 for a bottle of mineral water but 7-Eleven is willing to sell at $2.25. Therefore, there is no consumer surplus generated.

No Consumer Surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

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Students have asked these similar questions

What is meant by consumer surplus? a It is the total quantity of a good bought by a consumer divided by the price paid. b It is a measure of an individual consumer's utility from the consumption of a good. c It is the difference between a consumer's maximum willingness to pay and the price. d It is a measure of the total benefit to consumers from the purchase of a good.

] It is a hot day, and Elmo is thirsty. Here is the value of Elmo places on a bottle of water:] Value of first bottle $7 Value of second bottle $5 Value of third bottle $3 Value of fourth bottle $1 From this information, derive Elmo’s demand schedule. Then graph his demand curve for bottled water. If the price of a bottle of water is $4, how many bottles does Elmo buy? How much consumer surplus does Elmo get from his purchases? Show Elmo’s consumer surplus in your graph. If the price falls to $2, how does quantity demanded change? How does Elmo’s consumer surplus change? Show these changes in your graph.

It is a hot day and Bert is thirsty. Here is the value he places on a bottle of water: Bottle of Water Value Value of first bottle $7 Value of second bottle $5 Value of third bottle $3 Value of fourth bottle $1 From this information, derive Bert’s demand schedule. Graph his demand curve for bottled water. If the price of a bottle of water is $4, how many bottles does Bert buy? How much consumer surplus does Bert get from his purchases? Show Bert’s consumer surplus in your graph. If the price falls to $2, how does quantity demand change? How does Bert’s consumer surplus change? Show these changes in your graph.

Answer 2

Question

Chapter 4, Problem 1P

To determine

(a)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer surplus

Explanation of Solution

Leon willingness to pay is upto $10. Price of T-shirt is exactly $10. So, no consumer surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

To determine

(b)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer Surplus

Explanation of Solution

Since Albert is willing to pay $30 for a used copy of Nirvana's greatest Hits and the copy of it is being sold at $30, there is no consumer surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

To determine

(c)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer Surplus

Explanation of Solution

There is no action of buying an d selling of mineral water between Stacey and 7-Eleven as Stace is willing to pay only $2 for a bottle of mineral water but 7-Eleven is willing to sell at $2.25. Therefore, there is no consumer surplus generated.

No Consumer Surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 4, Problem 1P

To determine

(a)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer surplus

Explanation of Solution

Leon willingness to pay is upto $10. Price of T-shirt is exactly $10. So, no consumer surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

To determine

(b)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer Surplus

Explanation of Solution

Since Albert is willing to pay $30 for a used copy of Nirvana's greatest Hits and the copy of it is being sold at $30, there is no consumer surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

To determine

(c)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer Surplus

Explanation of Solution

There is no action of buying an d selling of mineral water between Stacey and 7-Eleven as Stace is willing to pay only $2 for a bottle of mineral water but 7-Eleven is willing to sell at $2.25. Therefore, there is no consumer surplus generated.

No Consumer Surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 4, Problem 1P

To determine

(a)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer surplus

Explanation of Solution

Leon willingness to pay is upto $10. Price of T-shirt is exactly $10. So, no consumer surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

To determine

(b)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer Surplus

Explanation of Solution

Since Albert is willing to pay $30 for a used copy of Nirvana's greatest Hits and the copy of it is being sold at $30, there is no consumer surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

To determine

(c)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer Surplus

Explanation of Solution

There is no action of buying an d selling of mineral water between Stacey and 7-Eleven as Stace is willing to pay only $2 for a bottle of mineral water but 7-Eleven is willing to sell at $2.25. Therefore, there is no consumer surplus generated.

No Consumer Surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 4, Problem 1P

To determine

(a)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer surplus

Explanation of Solution

Leon willingness to pay is upto $10. Price of T-shirt is exactly $10. So, no consumer surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

To determine

(b)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer Surplus

Explanation of Solution

Since Albert is willing to pay $30 for a used copy of Nirvana's greatest Hits and the copy of it is being sold at $30, there is no consumer surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

To determine

(c)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer Surplus

Explanation of Solution

There is no action of buying an d selling of mineral water between Stacey and 7-Eleven as Stace is willing to pay only $2 for a bottle of mineral water but 7-Eleven is willing to sell at $2.25. Therefore, there is no consumer surplus generated.

No Consumer Surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

Answer 6

Chapter 4, Problem 1P

To determine

(a)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer surplus

Explanation of Solution

Leon willingness to pay is upto $10. Price of T-shirt is exactly $10. So, no consumer surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

Answer 7

Chapter 4, Problem 1P

To determine

(a)

Consumer Surplus

Answer 8

Expert Solution

Answer to Problem 1P

No consumer surplus

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Leon willingness to pay is upto $10. Price of T-shirt is exactly $10. So, no consumer surplus.

Answer 13

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

Answer 14

To determine

(b)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer Surplus

Explanation of Solution

Since Albert is willing to pay $30 for a used copy of Nirvana's greatest Hits and the copy of it is being sold at $30, there is no consumer surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

Answer 15

To determine

(b)

Consumer Surplus

Answer 16

Expert Solution

Answer to Problem 1P

No consumer Surplus

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

Since Albert is willing to pay $30 for a used copy of Nirvana's greatest Hits and the copy of it is being sold at $30, there is no consumer surplus.

Answer 21

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

Answer 22

To determine

(c)

Consumer Surplus

Expert Solution

Answer to Problem 1P

No consumer Surplus

Explanation of Solution

There is no action of buying an d selling of mineral water between Stacey and 7-Eleven as Stace is willing to pay only $2 for a bottle of mineral water but 7-Eleven is willing to sell at $2.25. Therefore, there is no consumer surplus generated.

No Consumer Surplus.

Economics Concept Introduction

Introduction:

Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.

Answer 23

To determine

(c)

Consumer Surplus

Answer 24

Expert Solution

Answer to Problem 1P

No consumer Surplus

Answer 25

Expert Solution

Answer 26

Expert Solution

Answer 27

Expert Solution

Answer 28

Explanation of Solution

There is no action of buying an d selling of mineral water between Stacey and 7-Eleven as Stace is willing to pay only $2 for a bottle of mineral water but 7-Eleven is willing to sell at $2.25. Therefore, there is no consumer surplus generated.

No Consumer Surplus.