MICROECONOMICS(LL)COMPANION
21st Edition
ISBN: 9781260713541
Author: McConnell
Publisher: MCG
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Question
Chapter 4, Problem 1P
To determine
Consumer surplus.
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OT
1. A college student enjoys eating pizza. Her
willingness to pay for each slice is shown in the
following table:
Number of pizza
slices
к
1
2
3
4
5
6
7
Willingness to pay (per
slice)
$6
+
LO
5
4
3
2
1
a. If pizza slices cost $3 each, how many slices
will she buy? How much consumer surplus will
she enjoy?
O
3
5-8. Based on the figure below, indicate the area of consumer and producer surplus at the equilibrium and compare it with those with the price floor of $9. No calculation is needed.
The figure below shows the market for large bags of potato chips. Market for Potato Chips in large bag units Price ($) 7 LO LO 5 3 2 1 0 10 20 30 40 50 60 70 80 90 100110120 S D
Chapter 4 Solutions
MICROECONOMICS(LL)COMPANION
Ch. 4.A - Prob. 1ADQCh. 4.A - Prob. 2ADQCh. 4.A - Prob. 3ADQCh. 4.A - Prob. 1ARQCh. 4.A - Prob. 2ARQCh. 4.A - Prob. 3ARQCh. 4.A - Prob. 1APCh. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQ
Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Prob. 5RQCh. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7P
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- ADVANCED ANALYSIS Assume the following values for the figures below Q_{1} = 20 bags Q_{2} = 15 bags. Q_{3}; =27 bags. The market equilibrium price is $45 per bag. The price at a is $85 per bag. The price at c is $5 per bag. The price at f is $59 per bag. The price at g $31 per bag. Apply the formula for the area of a triangle (Area=1/ 2 * Base*Height) to answer the following questions.arrow_forwardThe graph shows the market for tutoring at a university. Price (per hour of tutoring) $25 20 15 10 7.50 LO 5 2.50 S D 100 200 300 400 500 600 700 800 900 Quantity (hours of tutoring per week) If there is a price floor of $15, consumer surplus is, in numerals, $.arrow_forward1. Chapter 4 Market Failure Caused by Externalities Page 94 Problem 1 Draw a supply and demand graph and identify the areas of consumer surplus and producer surplus. Given the demand curve, how will an increase in supply affect the amount of surplus shown in your diagram ? Explain. LO4.1 (Differentiate between demand-side market failures and supply-side market failures.arrow_forward
- Consider a buyer and a seller meeting to exchange a product. The seller has a minimum willing to sell ( WTS) of $20.00, while the buyer has a maximum willingness to pay ( WTP) of $65.00. If they agree on the price ( P) of $33.40, then the producer surplus is $_ P WTS WTP 10 20 30 40 50 60 70 80 90 O A. 13.40 O B. 22.90 O C. 22.40 O D. 22.15arrow_forwardPrice per bin 120 110 100 90 80 70 60 50 40 30 20 10 O $0 D2 10 20 30 40 50 60 70 80 90 100 Bins of peaches Suppose the figure represents the market for peaches and there are no externalities in the market. Suppose a sales tax of $40 per bin of peaches is levied on consumers of peaches. The new demand curve is labeled D2. Consumer surplus after the tax is: O $1000 D1 $300 O $100arrow_forwardADVANCED ANALYSIS Assume the following values for the diagrams below: Q1 = 16 bags. Q2 = 11 bags. Q3 = 23 bags. The market equilibrium price is $53 per bag. The price at point a is $85 per bag. The price at point c is $5 per bag. The price at point d is $63 per bag. The price at point e is $38 per bag. The price at point f is $74 per bag. The price at point g is $39 per bag. Apply the formula for the area of a triangle (Area = ½ × Base × Height) to answer the following questions. a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced? $ What is the dollar value of the consumer surplus at that output level? $ b.What is the dollar value of the deadweight loss when output level Q2 is produced? $ What is the total surplus when output level Q2 is produced? $ c.What is the dollar value of the deadweight loss when output level Q3 is produced? $ What is…arrow_forward
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