EBK MICROECONOMICS
12th Edition
ISBN: 9780100659452
Author: PARKIN
Publisher: YUZU
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Chapter 5, Problem 4SPA
To determine
Identify the individual
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What are the factors that caused the consumer surplus?
Marcus buys a tablet for $5,000. What determines the size of consumer surplus Marcus receives? Explain.
Suppose the daily demand curve for gasoline is as provided in the accompanying graph.
a. Calculate the consumer surplus in the market for gasoline if the market price is $3.50.
Consumer surplus = $ ___________ million
Now suppose the price decreases to $2.50 per gallon. Move the price line on the graph to reflect this change, then calculate the new consumer surplus.
New consumer surplus = $________million
Chapter 5 Solutions
EBK MICROECONOMICS
Ch. 5.1 - Prob. 1RQCh. 5.1 - Prob. 2RQCh. 5.1 - Prob. 3RQCh. 5.1 - Prob. 4RQCh. 5.2 - Prob. 1RQCh. 5.2 - Prob. 2RQCh. 5.2 - Prob. 3RQCh. 5.2 - Prob. 4RQCh. 5.2 - Prob. 5RQCh. 5.2 - Prob. 6RQ
Ch. 5.3 - Prob. 1RQCh. 5.3 - Prob. 2RQCh. 5.3 - Prob. 3RQCh. 5.4 - Prob. 1RQCh. 5.4 - Prob. 2RQCh. 5.4 - Prob. 3RQCh. 5.4 - Prob. 4RQCh. 5 - Prob. 1SPACh. 5 - Prob. 2SPACh. 5 - Prob. 3SPACh. 5 - Prob. 4SPACh. 5 - Prob. 5SPACh. 5 - Prob. 6SPACh. 5 - Prob. 7SPACh. 5 - Prob. 8SPACh. 5 - Prob. 9SPACh. 5 - Prob. 10SPACh. 5 - Prob. 11APACh. 5 - Prob. 12APACh. 5 - Prob. 13APACh. 5 - Prob. 14APACh. 5 - Prob. 15APACh. 5 - Prob. 16APACh. 5 - Prob. 17APACh. 5 - Prob. 18APACh. 5 - Prob. 19APACh. 5 - Prob. 20APACh. 5 - Prob. 21APACh. 5 - Prob. 22APACh. 5 - Prob. 23APACh. 5 - Prob. 24APACh. 5 - Prob. 25APACh. 5 - Prob. 26APACh. 5 - Prob. 27APA
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- Calculate consumer surplus based on a graph or table.arrow_forwardWHEN DO YOU SAY THAT THERE IS EXCESS SUPPLY FOR A COMMODITY IN THE MARKET?arrow_forwardLook at the graph. A bookstore owner increases the price of art books to $25. Which of these would occur? A higher equilibrium point, because demand and price increased A lower equilibrium point, because the supply will increase A shortage, because the price is lower than equilibrium price A surplus, because the price is higher than equilibrium pricearrow_forward
- Neha buys an iPhone for $240 and gets a consumer surplus of $160. Her willingness to pay for an iPhone is . If she had bought the iPhone on sale for $180, her consumer surplus would have been . If the price of the iPhone had been $500, her consumer surplus would have beenarrow_forwardWhat is the relationship between quantity demanded and quantity supplied at equilibrium? What is the relationship when there is a shortage? What is the relationship when there is a surplus?arrow_forwardWhy doesn’t the change to equilibrium happen immediately when there is surplus in the market?arrow_forward
- The following relations describe the supply and demand for posters. QD = 65,000 - 10,000P and QS = -35,000 + 15,000P where Q is the quantity and P is the price of a poster, in dollars. a. Complete the following table. Price Qs Qd surplus or shortage $6.00 5.00 4.00 3.00 2.00 1.00 b. What is the equilibrium price?arrow_forwardEconomics Graph and explain how the market for used cars is impacted by higher prices for resources used to produce new cars. Show the impact to the equilibrium price and quantity with full explanation.arrow_forwardExplain how the market moves to equilibrium in terms of shortages and surpluses and in terms of maximum buying prices and minimum selling prices.arrow_forward
- Suppose the total demand for wheat and the total supply of wheat per month in the Kansas City grain market are as shown in the accompanying table.a. What is the equilibrium price? What is the equilibrium quantity? Fill in the surplus-shortage column and use it to explain why your answers are correct.b. Graph the demand for wheat and the supply of wheat. Be sure to label the axes of your graph correctly. Label equilibrium price P and equilibrium quantity Q. c. Why will $3.40 not be the equilibrium price in this market? Why not $4.90? “Surpluses drive prices up; shortages drive them down.” Do you agree?arrow_forwardSuppose there is an early freeze in California that reduces the size of the lemon crop. As the price of lemons rises, what happens to consumer surplus in the market for lemons?arrow_forwardDraw a supply and demand graph for the market for air travel. Analyze the impact of an increase in the cost of jet fuel. Be sure to use just one graph, shifting either the demand curve or the supply curve the correct direction. Show the impact on equilibrium price and equilibrium quantity.arrow_forward
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