MICROECONOMICS W/CONNECT
18th Edition
ISBN: 9781307253085
Author: McConnell
Publisher: Mcgraw-Hill/Create
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Chapter 4, Problem 2P
To determine
The producer surplus .
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Fei, Morgan, and Lakesha are all in the market for new Levi’s jeans. The marginal benefit for each pair of jeans per year for each of them is provided in the following table:
Quantity
Fei
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Lakesha
1
$85
$40
$90
2
$60
$32
$75
3
$32
$24
$55
4
$20
$16
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5
$15
$8
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If the price of a pair of Levi’s jeans is $32, how many pairs of jeans will each person purchase? How much consumer surplus does each of them receive from the last pair of jeans purchased? How much consumer surplus will each of them receive for each of the pairs they buy at a price of $32? How much do they receive collectively?
Suppose 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
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O 2400
O 3200
Suppose that there are three beachfront parcels of land available for sale in Asilomar and six people who would each like to purchase one parcel. Assume that the parcels are essentially identical and that the minimum selling price of each is $445,000. The following table states each person's willingness and ability to purchase a parcel.
Person
Willingness and Ability to Purchase
(Dollars)
Ana
510,000
Charles
470,000
Dina
420,000
Gilberto
390,000
Juanita
380,000
Yakov
600,000
Which of these people will buy one of the three beachfront parcels? Check all that apply.
A. Ana
B. Charles
C. Dina
D. Gilberto
E. Juanita
F. Yakov
Assume that the three beachfront parcels are sold to the people that you indicated in the previous section. Suppose that a few days after the last of those beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum price of $432,500. This fourth…
Chapter 4 Solutions
MICROECONOMICS W/CONNECT
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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