Homework Answers
Since the consumer surplus is the area below the demand curve and above the price.
In other words, the consumer surplus is the difference of maximum willingness to pay for any good and price of that good.
As it can be seen in the diagram that initial price was OP, then the consumer surplus was the area below demand curve and above price OP.
It was area (x+y+z)
But when the price is increased from OP to new price level and quantity is restricted to only Q units.
Then new consumer surplus will be = area(x)
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13. The diagram shows an individual's demand curve for a commodity. price P quantity The supplier...
37. If we know each consumer's demand curve, we can derive the market demand curve by:...
37. If we know each consumer's demand curve, we can derive the market demand curve by: A) vertically summing the individual demand curves. B) horizontally summing the individual demand curves. C) averaging the individual demand curves. D) obtaining consumer incomes and summing them. E) none of the above. 38. Which resource is not an example of capital? A) equipment B) stocks and bonds C) physical plants D) machinery 39. Because of scarcity, A) the available supply of time.goods, and resources...
Q=100,000-10,000P solve for the consumer surplus at the equilibrium price and quantity Demand: Let the Market...
Q=100,000-10,000P solve for the consumer surplus at the
equilibrium price and quantity
Demand: Let the Market Demand curve for soybeans be given by the following equation: Q=100,000 -10,000P where the quantity of soybeans in kilograms P = the price of soybeans in dollars per kilogram. Supply: Let the Market Supply curve for soybeans be given by the equation: Q=-5,000+ 5,000P 3) Consumer Surplus: The Consumer Surplus (CS) is the triangular area under the demand curve and above the equilibrium price....
D Question 13 1 pts When a commodity has perfectly inelastic demand, its demand curve is...
D Question 13 1 pts When a commodity has perfectly inelastic demand, its demand curve is vertical the quantity demanded would vary tremendously if there were any changes in price. its price elasticity of demand is infinity all above are correct
100 3. The demand curve for a commodity is given by q-Show that the price at...
100 3. The demand curve for a commodity is given by q-Show that the price at which revenue is maximised is also equal to the price at which the demand for the product is unitary elastic. Given that price elasticity of demand E(p) can be found using the formula E(p)=-÷ de and unitaryelasticityoccurs where lE(p)1=1
3. Consumer surplus and price changes Aa Aa . The following graph shows the demand curve...
3. Consumer surplus and price changes Aa Aa . The following graph shows the demand curve for a group of consumers in the market for a mobile phone. Each consumer wants only one mobile phone. Assume that if an individual has a willingness to pay just equal to the market price, he or she will make the purchase. (Notice that on this graph, the demand curve is drawn as a series o steps, but only the rightmost corner of each...
The accompanying diagram illustrates the U.S. domestic demand curve and domestic supply curve for beef. Price...
The accompanying diagram illustrates the U.S. domestic demand curve and domestic supply curve for beef. Price of beef Domestic supply P A P Domestic demand Q Ost Our Q, Quantity of beef The world price of beef is Pw. The United States currently imposes an import tariff on beef, so the price of beef is Pr. Congress decides to eliminate the tariff. In terms of the areas marked in the diagram, answer the following questions. a. With the elimination of...
Is the area found above market price and below the demand curve Producer surplus Quantity demanded...
Is the area found above market price and below the demand curve Producer surplus Quantity demanded Consumer surplus Social surplus
C) Suppose that there was a change in the demand so that the new demand curve...
C) Suppose that there was a change in the demand so that
the new demand curve is now: P=15 – 2Q. What is the new equilibrium
price and quantity? Draw this on the diagram and call it B. Is the
Point A still Pareto efficient? Why or why not?
Explain.
Demand Curve: ?? = 15 − 2?
Supply Curve: ?? = ? + 3
At Equilibrium: ?? = ??
Therefore, to find Quantity: 15 – 2? = ? + 3...
The following diagram shows supply and demand in the market for laptops. Demand PRICE (Dollars per...
The following diagram shows supply and demand in the market for laptops. Demand PRICE (Dollars per laptop) Supply 0 + 70 0 35 + 105 140 175 210 245 280 QUANTITY (Millions of laptops) 315 350 Suppose the government enacts a Price Floor of PF = $60. Fill in the following blanks with integer values: The equilibrium price is The equilibrium quantity is The consumer surplus is The producer surplus is The total surplus is
Suppose that the price p for a certain commodity declines toward $3 as the quantity available...
Suppose that the price p for a certain commodity declines toward $3 as the quantity available to consumers gets larger and larger. It is also known that when q=0, p=24, and when q=10, p=15. Determine the linear-to-linear rational demand function that satisfies these conditions. (Round any values to one decimal place if needed.) p = ?
37. If we know each consumer's demand curve, we can derive the market demand curve by: A) vertically summing the individual demand curves. B) horizontally summing the individual demand curves. C) averaging the individual demand curves. D) obtaining consumer incomes and summing them. E) none of the above. 38. Which resource is not an example of capital? A) equipment B) stocks and bonds C) physical plants D) machinery 39. Because of scarcity, A) the available supply of time.goods, and resources...
Q=100,000-10,000P solve for the consumer surplus at the
equilibrium price and quantity
Demand: Let the Market Demand curve for soybeans be given by the following equation: Q=100,000 -10,000P where the quantity of soybeans in kilograms P = the price of soybeans in dollars per kilogram. Supply: Let the Market Supply curve for soybeans be given by the equation: Q=-5,000+ 5,000P 3) Consumer Surplus: The Consumer Surplus (CS) is the triangular area under the demand curve and above the equilibrium price....
D Question 13 1 pts When a commodity has perfectly inelastic demand, its demand curve is vertical the quantity demanded would vary tremendously if there were any changes in price. its price elasticity of demand is infinity all above are correct
100 3. The demand curve for a commodity is given by q-Show that the price at which revenue is maximised is also equal to the price at which the demand for the product is unitary elastic. Given that price elasticity of demand E(p) can be found using the formula E(p)=-÷ de and unitaryelasticityoccurs where lE(p)1=1
3. Consumer surplus and price changes Aa Aa . The following graph shows the demand curve for a group of consumers in the market for a mobile phone. Each consumer wants only one mobile phone. Assume that if an individual has a willingness to pay just equal to the market price, he or she will make the purchase. (Notice that on this graph, the demand curve is drawn as a series o steps, but only the rightmost corner of each...
The accompanying diagram illustrates the U.S. domestic demand curve and domestic supply curve for beef. Price of beef Domestic supply P A P Domestic demand Q Ost Our Q, Quantity of beef The world price of beef is Pw. The United States currently imposes an import tariff on beef, so the price of beef is Pr. Congress decides to eliminate the tariff. In terms of the areas marked in the diagram, answer the following questions. a. With the elimination of...
Is the area found above market price and below the demand curve Producer surplus Quantity demanded Consumer surplus Social surplus
C) Suppose that there was a change in the demand so that
the new demand curve is now: P=15 – 2Q. What is the new equilibrium
price and quantity? Draw this on the diagram and call it B. Is the
Point A still Pareto efficient? Why or why not?
Explain.
Demand Curve: ?? = 15 − 2?
Supply Curve: ?? = ? + 3
At Equilibrium: ?? = ??
Therefore, to find Quantity: 15 – 2? = ? + 3...
The following diagram shows supply and demand in the market for laptops. Demand PRICE (Dollars per laptop) Supply 0 + 70 0 35 + 105 140 175 210 245 280 QUANTITY (Millions of laptops) 315 350 Suppose the government enacts a Price Floor of PF = $60. Fill in the following blanks with integer values: The equilibrium price is The equilibrium quantity is The consumer surplus is The producer surplus is The total surplus is
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