MyLab Economics with Pearson eText -- Access Card -- for Microeconomics
2nd Edition
ISBN: 9780134519517
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 5, Problem 13P
(a)
To determine
The demand curve for quantity demanded, that is,
(b)
To determine
The
(c)
To determine
Consumer Surplus when the price is equal to 4.
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Students 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?
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.
Suppose demand for a good is QD = 100 - P and supply is QS = -20 + P. What is the consumer surplus?
a. 200
b. 400
c. 600
d. 800
Chapter 5 Solutions
MyLab Economics with Pearson eText -- Access Card -- for Microeconomics
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - Prob. 5QCh. 5 - Prob. 6QCh. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Why does a demand curve with a constant slope not...Ch. 5 - Prob. 10Q
Ch. 5 - How is the price elasticity of demand calculated...Ch. 5 - Prob. 12QCh. 5 - What can income elasticity of demand tell us about...Ch. 5 - Prob. 14QCh. 5 - Prob. 15QCh. 5 - During an economic slump, such as the 2008...Ch. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - Prob. 10PCh. 5 - Prob. 11PCh. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 1ACh. 5 - Prob. 2ACh. 5 - Prob. 3A
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Similar questions
- IF you have 2 goods, that are perfect one to one substitutes, and the price of one of the goods rises, what happens to the consumer surplus?arrow_forwardWhat is the value of the consumer surplus if the market price is $15? Group of answer choices $10 $5 $20 $30arrow_forwardJungkook bought a new iPhone13 for $1,133. He values the phone at $1,748. Suga values the phone at $2,528. If I force Jungkook to give his phone to Suga what is the change in total surplus? Do not include the $ sign and remember to include a negative sign if you want to say that surplus has decreased.arrow_forward
- Consider the supply and demand curves for taxi rides in the attached graph. If the price is $2.50 then consumers enjoy a surplus of______million dollars.arrow_forwardJohn bought a new iPhone13 for $1,271. He values the phone at $2,046. Tom values the phone at $2,584. If I force John to give his phone to Tom what is the change in total surplus?arrow_forwardWhat is a surplus? Define it and discuss how the market can return to equilibriumarrow_forward
- What is the market price if there is a surplus of 200 in the market? Show the necessary solutions.arrow_forwardGive typing answer with explanation and conclusion If the price is temporarily below the equilibrium price in the market for grapefruit and it returns to equilibrium, the total surplus will decrease. will not change. will increase. may change, but we cannot determine the change without more information.arrow_forward3. Consumer surplus for a group of consumers The following graph shows the demand curve for a group of consumers in the U.S. market (blue line) for smartphones. The market price of a smartphone is shown by the black horizontal line at $120. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Kevin, green (triangle symbols) for Maria, purple (diamond symbols) for Rajiv, tan (dash symbols) for Simone, and blue (circle symbols) for Yakov. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a smartphone at a market price of $120. (Note: If a person will not purchase a smartphone at the market price, indicate this by leaving his or her rectangle in its original position on the palette.)arrow_forward
- ] 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.arrow_forwardA surplus occurs when the price is?arrow_forwardonly typed answer A consumer has inverse demand of p=15−1q for a good and the market price is $4.00. Calculate consumer surplus and the total value of the good for the corresponding quantity consumed. Consumer surplus is $enter your response here. (Enter your response rounded to two decimal places.) The consumer's expenditure for the good is $enter your response here. (Enter your response rounded to two decimal places.)arrow_forward
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