MICROECONOMICS(LL)COMPANION
21st Edition
ISBN: 9781260713541
Author: McConnell
Publisher: MCG
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Question
Chapter 4, Problem 1RQ
To determine
The impact of increasing supply on consumer surplus.
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The 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, $.
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.
17. You're given the following supply and demand
table: (LO5-5)
P
$0
2
4
6
8
10
12
14
Demand
Q
1,000
800
700
500
300
200
100
0
P
$0
2
4
6
8
10
12
14
Supply
Q
0
200
400
500
700
900
1,100
1,200
a.
What is equilibrium price and quantity in a market
system with no interferences?
b.
If this were a third-party-payer market where the con-
sumer pays $4, what is the quantity demanded? What
is the price charged by the seller?
c. What is total spending in the two situations described
in a and b?
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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- 10:17 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 3arrow_forwardSuppose a demand curve has a vertical intercept of (0,80). Suppose a supply curve has a vertical intercept of (0,0). The equilibrium price is $30 and the dollars. equilibrium quantity is 40. The total surplus is O 800 O 1600 O 2400 O 3200arrow_forwardBased on Figure 48, choose the correct statement. Assume that Nation 2 imposes a quota (30X) on imports of X (an agricultural commodity). Figure 48 Partial equilibrium effects of an import quota Py (S) 25 10 20 25 30 40 50 55 60 65 70 O 1) Given the increase in demand from Dx to D'x, the price of X increases to $2.5, and the quota is 20X. 2) Given the increase in demand from Dx to D'x, the price of X increases to $2.5, and the quota is 55X. 3) Given the increase in demand from Dx to D'x, the price of X increases to $2, and the quota is the same. O 4) Given the increase in demand from Dx to D'x, the price of X increases to $2.5, and the quota is the same.arrow_forward
- O The demand curve for a product is given by Qp = 400-20P and the supply curve for a product is given by Qs = 16P-32. O a. Illustrate the demand curve and the supply curve on the same graph. O b. Find the equilibrium price and quantity. O c. Find numerical values for the consumer surplus and the producer surplus. O d. Identify consumer surplus and producer surplus on your graph.arrow_forwardThere are two consumers, Andy and Ben, in the market for pumpkins. Their willingness to pay for each pumpkin is shown in the table Pumpkin Market. There are two producers of pumpkins, Cindy and Diane, and their costs are also shown. The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5. At the equilibrium price and quantity, Cindy sells pumpkins, and her producer surplus is______ Andy's Quantity of willingness to Pumpkins pay 1st pumpkin $12 2nd pumpkin 3rd pumpkin 8 4th pumpkin 6 A) four; $2 10 B) three; $81 C) two: $ D) one; $5 Ben's willingness Cindy's to pay cost $11 9 7 5 $3 00 10 Diane's cost $4 11arrow_forwardPart 1 of a 2-part question: Suppose the market demand and supply curves for "rental housing" are: Demand: Q= 10 - 5P Supply: Q= 5P (Note that the numbers are scaled down for easy computation!) If the market for rental housing is currently in unregulated, competitive equilibrium, total social welfare in this market is: O 1.25 O 2.5 O 5 O 10arrow_forward
- If the market equilibrium price rises from $10-$15, which statement is true?arrow_forwardSupply $4 $3 $2 Demand 100 150 Quantity If price is increased from $3 to $4 in the graph above, consumer surplus will fall by:. 100 O50 O 25 125arrow_forwardThe supply curve in a market is given by P = 10 +5.25(Q), while the demand curve is P = 102 - 36(Q). The consumer surplus and producer surplus at the equilibrium will be CSE =________ PSE =__ O A. 136.0; 17.3 OB. 89.5 13.1 O C. 96.9 15.7 O D. 136.0 23.0 O E. 113.1 17.3arrow_forward
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