Table: Maximum Willingness to Pay Willingness to pay for 1 lb of bananas $2.00 1.25 0.75 0.25 Name Jill Joe Jane James The table shows four individuals' maximum willingness to pay for one pound of bananas. If the market price of bananas is $0.50/lb, what is the total consumer surplus in the market? $2.75 $4.00 $2.50 $4.25
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- If Sam is willing to pay $50 for one good X, $30 for a second, $20 for a third, $8 for a fourth, and the market price is $10, then Sam’s consumer surplus isa. $10. b. $40. c. $70. d. $100. PreviousNextSuppose there are three identical flatsavailable to be purchased. Buyer 1 is willing to pay €30,000for one, buyer 2 is willing to pay €25,000for one, and buyer 3 is willing to pay €20,000for one. If the price is €25,000, how many flatswill be sold and what is the value of consumer surplus in this market?The following Table refers to four buyers’ willingness to pay for papadums. Each buyeris willing to buy at most one papadum and no more. buyer Willingness to pay ($) for onepapadum Lincoln 17.00 Jefferson 15.00 Franklin 9.00 Washington 3.00 (a) Let the competitive market price be $4.00: calculate the total consumer surplusin the market at this price.(b) Assume now that there is only a single seller of papadums, and she knows eachbuyer’s willingness to pay. Assume that this seller incurs a cost of $4.00 perunit of papadum produced (i.e., the marginal cost is constant). If she intends tomaximise profits, how many papadums would this seller supply to the market,and what price would she charge? Remember, the price has to be the same foreach unit sold. Hint: start at a price of $17 and calculate what profit would be.Then lower the price just enough to attract an additional buyer and calculatewhat the new profit would be. Repeat this until all four buyers are purchasingthe…
- Buyer Willingness to Pay David $8.00 Laura $7.00 Ty $5.50 Mallory $4.00 Audrey $3.50 In the above table, at different market prices, which statement is NOT correct? Question 27 options: At a price of $9.00, no buyer is willing to purchase the good. When the price is $3.00, each person would receive consumer surplus. At a price of $4.00, total consumer surplus in the market will be $8.50. At a price of $7.50, the consumer surplus for Laura is $0.50.Assume the price of a particular paint brush is $3.50. Denise purchases the paint brush for $3.50 but was wiling to pay $5.00. Ted purchases the paint brush for $3.50 but was willing to pay $4.00. What is the total consumer surplus for Denise and Ted? Group of answer choices $2.00 $4.00 $5.00 $3.55 $1.50The following Table refers to four buyers’ willingness to pay for papadums. Each buyer is willing to buy at most one papadum and no more. Buyer Willingness to Pay Linc $17.00 Jeff $15.00 Frankie $9.00 Wash $3.00 a. Let the competitive market price be $4.00: calculate the total consumer surplus in the market at this price. b. Assume now that there is only a single seller of papadums, and she knows each buyer’s willingness to pay. Assume that this seller incurs a cost of $4.00 per unit of papadum produced (i.e., the marginal cost is constant). If she intends to maximise profits, how many papadums would this seller supply to the market, and what price would she charge? Remember, the price has to be the same for each unit sold. Hint: start at a price of $17 and calculate what profit would be. Then lower the price just enough to attract an additional buyer and calculate what the new profit would be. Repeat this until all four buyers are purchasing the…
- Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up to $20 each for 10 scarves. When he arrives at Macy’s at 5:00 A.M. on Black Friday, he discovers that scarves are on sale for $12 each. Hugo buys 10 scarves and uses the remaining $80 to buy himself some clothes. How much consumer surplus did Hugo receive from the tenth scarf he purchased? Assuming Hugo follows the Rational Rule for Buyers, why did Hugo only purchase 10 scarves when they were on sale? Shouldn't he have purchased more since they were such a good deal compared to what he was willing to pay? Now suppose the manager at Macy’s had 100 scarves in inventory. She decided to put the scarves on sale for $10, but an employee accidentally listed the sales price as $12. To the manager’s surprise, the store sold all 100 scarves at the $12 sales price. How much producer surplus did Macy’s…Melissa buys an iPod for $120 and gets consumer surplus of $80. a. What is her willingness to pay?b. If she had bought the iPod on sale for $90, what would her consumer surplus have been?c. If the price of an iPod were $250, what would her consumer surplus have been? (3) * Add fileUse the table below to answer part a and b. Buyer Willingness to Pay Lori $50.00 Audrey $30.00 Zach $20.00 Calvin $10.00 a) If the price of the product is $15, then who would be willing to purchase the product? b) If the price of the product is $18, then the total consumer surplus is _____ c) Chad is willing to pay $5.00 to get his first cup of morning latté; he is willing to pay $4.50 for a second cup. He buys his first cup from a vendor selling latté for $3.75 per cup. He returns to that vendor later in the morning to find that the vendor has increased her price to $3.90 per cup. Chad buys a second cup. His consumer surplus is ____ d) Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $10, the cost of mowing the second lawn is $12, and the cost of mowing the third lawn is $15. His producer surplus on the first three lawns of the day is $53. If Ronnie charges all customers the same price for lawn mowing, that price…
- Your grandmother likes old-fashioned yard salesand doesn’t understand why everyone is so excitedabout eBay. Explain to her why the creation of amarket that enables people who don’t live in thesame town to buy and sell used goods increasestotal surplus over the yard-sale market.Show all work please thanks D.) Now, according to this graph, how much is the consumer surplus when price is set below the equilibrium level at P=$5? (Use the area of a triangle and the area of a rectangle, length x length) E.) According to this graph, how much is the producer surplus when price is equal at P= $5? (use the area of triangle: Base x Height x 1⁄2) F.)In the graph, how much is deadweight loss at a price of $5? (use the area of a triangle) please show calculations so I know how to arrive at those numbers! Thank youCarrie is willing to pay $1400 for the new Samsung Galaxy phone. Samsung is selling the new Galaxy phone for $1200. It costs Samsung $600 to produce this phone. The total economic surplus if Carrie purchases this phone is $________. Im not sure which one is right one individual said onsumer surplus = 1/2(willing to pay - selling price ) *quantity CS = 1/2 ( 1400 - 1200) *1 CS = 100 Producer surplus = 1/2( selling price - willing to receive)*quantity PS = 1/2 ( 1200-600)*1 PS =300 total economic surplus = PS +CS = 400 and another said According to the given information, total economic surplus would be: =12×Maximum willingness to pay-Minimum Willingness to accept×quantity sold=12×$1400-$600×1=$400=$800