ECNS 201 PRINTOUT
8th Edition
ISBN: 9781337096553
Author: Mankiw
Publisher: CENGAGE L
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Question
Chapter 7, Problem 4PA
Subpart (a):
To determine
The demand curve for water and the consumer surplus.
Subpart (b):
To determine
The demand curve for water and the consumer surplus.
Subpart (c):
To determine
The demand curve for water and the consumer surplus.
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- only 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_forwardThe table below represents the market for DVDS. The value of consumer surplus is $__________milon (Enter your reaponse as an integer)arrow_forwardquestion attached !arrow_forward
- 4. Consumer surplus for an individual and a market The following graph shows Jacques's weekly demand for apple pie, represented by the blue line. Point A represents a point along his weekly demand curve. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line. Jacques's Weekly Demand 7.50 6.75 6.00 5.25 Demand 4.50 Y-Intercept: 3 3.75 Price 3.00 225 1.50 0.75 10 12 14 16 18 20 QUANTITY (Slices of apple pie) From the previous graph, you can tell that Jacques is willing to pay s for his 8th slice of apple pie each week. Because he has to pay only $3.00 per slice, the consumer surplus he gains from the 8th slice of apple pie is s PRICE (Dollars per slice)arrow_forward19) Consider the market for drinking water on a summer camping trip. The supply for water (in gallons) is Qs = 2 + 2P. There are two people on the camping trip, Tony and Khushbu. Tony's demand for drinking water is QDremy = 18 – 3P and Khushbu's demand is = 6 – P. a. What is the total demand for water on this trip? b. Graph supply and demand for drinking water and find the equilibrium price and quantity. c. Suppose some external factors cause the supply of water to shift to Qs = 12 + 2P. Graph this change and calculate the new equilibrium price and quantity. d. What is the price elasticity of demand for this price change? %3|arrow_forwardPRICE (Dollars per pastry) 9.00 8.25 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 1.50 0.75 0 Price Supply 0 2 + 4 6 Kenji's Weekly Supply A 8 10 12 14 16 QUANTITY (Pastries) 18 20 22 24 Using the previous graph, you can determine that Kenji is willing to supply his 6th weekly pastry for $ the producer surplus earned from supplying the 6th pastry is $ Since he receives $2.25 per pastry, Suppose the price of pastries were to rise to $3.00 per pastry. At this higher price, Kenji would receive a producer surplus of $ pastry he sells. from the 6tharrow_forward
- In the preceding diagram what areas represent consumers surplus at the equilibrium price of PE? At PC?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_forward3. Ellie sells seashell necklaces at $7 a necklace and currently has enough supply to meet demand. What would lead to a surplus of necklaces? Look at the following graph. Equilibrium p* Price Demand Supplyarrow_forward
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