Determine why economists focus on consumer and producer ‘surplus ’rather than on the possibility of consumer and producer ‘loss’

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Answer 1

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Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 5, Problem 3QR

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Determine why economists focus on consumer and producer ‘surplus ’rather than on the possibility of consumer and producer ‘loss’

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What is a producer surplus? Describe how it is illustrated on a supply and demand diagram?

Review the graph at right for a competitive market How much is the consumer surplus? Consumer surplus is $x (round your answer to two decimal places). How much is the producer surplus? Producer surplus is $x (round your answer to two decimal places) How much is the total surplus in this market? Total surplus is $x (round your answer to two decimal places). 100- 90- 80- 70-4 60- 50-145 40- 30- 20- 10- Price 0 45 50 60 70 80 Quantity 10 20 30 40 D MC 90 100

Answer the following questions based on the graph that represents Kyle's demand for ribs per week at Big Ed's Barbecue. f. If the price of ribs rose to $10, what would happen to Big Ed's producer surplus? g. What is the total surplus in this market at a price of $10? h. If the price of ribs fell to $5, what would be Kyle's consumer surplus? j. What is the total surplus in this market at a price of $5?

Answer 2

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Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 5, Problem 3QR

To determine

Determine why economists focus on consumer and producer ‘surplus ’rather than on the possibility of consumer and producer ‘loss’

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Answer 3

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 5, Problem 3QR

To determine

Determine why economists focus on consumer and producer ‘surplus ’rather than on the possibility of consumer and producer ‘loss’

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Answer 4

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Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 5, Problem 3QR

To determine

Determine why economists focus on consumer and producer ‘surplus ’rather than on the possibility of consumer and producer ‘loss’

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Answer 5

Chapter 5, Problem 3QR

To determine

Determine why economists focus on consumer and producer ‘surplus ’rather than on the possibility of consumer and producer ‘loss’

Answer 6

Chapter 5, Problem 3QR

To determine

Determine why economists focus on consumer and producer ‘surplus ’rather than on the possibility of consumer and producer ‘loss’

Answer 7

Chapter 5, Problem 3QR

To determine

Determine why economists focus on consumer and producer ‘surplus ’rather than on the possibility of consumer and producer ‘loss’

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 5 - Prob. 1QR Ch. 5 - Prob. 2QR Ch. 5 - Prob. 3QR Ch. 5 - Prob. 4QR Ch. 5 - Prob. 5QR Ch. 5 - Prob. 6QR Ch. 5 - Prob. 7QR Ch. 5 - Prob. 1SP Ch. 5 - Prob. 2SP Ch. 5 - Prob. 3SP

Determine why economists focus on consumer and producer ‘surplus ’rather than on the possibility of consumer and producer ‘loss’

Solution Summary: The author explains why economists focus on consumer and producer surplus, rather than on the possibility of loss in an economy.

Determine why economists focus on consumer and producer ‘surplus ’rather than on the possibility of consumer and producer ‘loss’

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