Equilibrium quantity=6 and equilibrium price will be 4
and consumer surplus is the difference between the willingness to pay and the actual pay
thus consumer surplus=3(5)+3(1)=15+3=18
How do I calculate price at equilibrium, quantity at equilibrium, and consumer surplus at equilibrium? Three...
QUESTION 1 Consumer surplus is the a. value of a good to a consumer. b. amount a consumer pays minus the amount the consumer is willing to pay. C. amount of a good consumers get without paying anything. d. amount a consumer is willing to pay minus the amount the consumer actually pays. QUESTION 2 Consumer surplus a. measures the benefit buyers receive from participating in a market b. measures the benefit sellers receive from participating in a market. c....
Consider a market for the tickets to a football match. Six supporters of the Blue team would like to buy tickets; their valuations of a ticket (their WTPwillingness to pay (WTP) An indicator of how much a person values a good, measured by the maximum amount he or she would pay to acquire a unit of the good. See also: willingness to accept.closewillingness to pay (WTP) An indicator of how much a person values a good, measured by the maximum...
please answer these. Thank you. 29. When a tax is placed on the buyers of coffee, the buyers bear the entire burden of the tax b. sellers bear the entire burden of the tax burden of the tax will be always be equally divided between the buyers and the sellers d. burden of the tax will be shared by the buyers and the sellers, but the division of the burden is not always equal 30. the government wants to reduce...
7. Taxation - An algebraic approach Suppose the supply of a good is given by the equation 0= 360P – 360, and the demand for the good is given by the equation OP-840 - 120P. where quantity (Q) is measured in millions of units and price (P) is measured in dollars per unit. The government decides to levy an excise tax of $2.00 per unit on the good, to be paid by the seller. Calculate the value of each of...
1. 2. 3. 4. 5. 6. Submit when finished answering the R button. Due to this being a web course, only scores will be shown, there will be back Question 1 1 pts Willingness to pay measures the value that a buyer places on a good. O is the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept. is the maximum amount a buyer is willing to pay minus the minimum...
Suppose the supply of a good is given by the equation Q 800P 2,400, and the demand for the good is given by the equation 2,000-200P , where quantity (Q) is measured in millions of units and price (P) is measured in dollars per unit. The government decides to levy an excise tax of $2.00 per unit on the good, to be paid by the seller. Calculate the value of each of the following, before the tax and after the...
I do not understand how to calculate the quantity demanded and quantity supplied? 1. Individual Problems 8-1 The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $30, $20, $10, $5, and $3 (one seller at each price). Five buyers are willing to buy one widget at the following prices: $10, $20, $30, $38, and $44 (one buyer at each price). For each price shown in the following...
1. In a competitive market, the quantity of a product produced and the price of the product are determined by a. buyers. b. sellers. c. both buyers and sellers. d. None of the above is correct. 2. Which of the following statements is correct? a. Buyers determine supply and sellers determine demand. b. Buyers determine demand and sellers determine supply. c. Buyers determine both demand and supply d. Sellers determine both demand and supply 3. The demand for a good...
Suppose the supply cf a good is given by the equation QS 50P -50, and the demand for the good is given by the equation oD - 175 -25P, where quantity (Q) Is measured in milions of units and price (P) is measured in dolars per unt. The government decides to levy an excise tax of $3.00 per unit on the good, to be paid by the seller. Calculate the value of each of the following, before the tax and...
7. Taxation An algebraic approach Suppose the supply of a good is given by the equation Q" = 48OP- 480, and the demand for the good is given by the equation QD = 960- 160P, where quantity (Q) is measured in millions of units and price (P) is measured in dollars per unit. The government decides to levy an excise tax of $1.00 per unit on the good, to be paid by the seller. Calculate the value of each of...