Answer
Consumer surplus is the area above price and below the demand curve, as the area is shaded dark in the figure
CS=0.5*(Y-axis intercept of the demand curve -P)*Q
Y-axis intercept of the demand curve =30
P=20
Q=10
CS=0.5*(30-20)*10
=$50
Option B
In Figure 6.1, the consumer surplus is equal to: Figure 6.1 O A. $100 O B....
If the price of a bottle of orange juice is $0.75, the total consumer surplus received by these consumers is S (Enter your response rounded to hwo decimal places) Suppose the price of a bottle of orange juice rises to $150 Once the price of a bottle of orange juice rises to $1 50, the total consumer surplus received by these consumers is : $(Enter your response rounded to hwo decimal places) If the price of a bottle of orange...
Price discrimination O a. increases total profit for the firm. O b. increases consumer surplus. O c. Both a) and b) Od. None of the above.
Question 5 Welfare for a country is equal to consumer surplus consumer surplus minus producer surplus consumer surplus plus producer Surplus plus tariffrevenues consumer surplus plus producer Surplus minus tariff revenues Question 6 Use the graph below to answer this question: In autarky (before trade) consumer surplus is the area represented by the letter(s) (For this question and the following ones that use the same graph. Sis domestic supply. Dis domestic demand Pw is the world price is the tarif)
Producer surplus is: a. always equal to consumer surplus. b. the amount paid to sellers above and beyond the required minimum to produce. c. the amount paid to sellers. d. the cost of production. e. the breakeven quantity.
All else equal, when the market price falls below equilibrium, consumer surplus: O stays the same. o decreases. o increases. O equals producer surplus.
When the efficient quantity is produced O A. producer surplus exceeds consumer surplus by the greatest possible amount O B. consumer surplus exceeds producer surplus by the greatest possible amount O C. total producer surplus is zero . O D. total consumer surplus is zero. O E. the sum of consumer surplus and producer surplus is maximized
a. If the monopoly firm is not allowed to price discriminate,
then consumer surplus amounts to
_______________________________
b. If the monopoly firm perfectly price discriminates, then
consumer surplus amounts to _______________________________
c. If the monopoly firm is not allowed to price discriminate,
then the deadweight loss amounts
_______________________________
d. If the monopoly firm perfectly price discriminates, then the
deadweight loss amounts to _______________________________
e. If there are no fixed costs of production, monopoly profit
without price discrimination equals
_______________________________
f....
QUESTION 3 Figure Price Supply P K I P" P B M N Demand Quantity Refer to Figure. If the government imposes a tax size of P- P" in the above market then the area L+M+Y represents a. consumer surplus after the tax. producer surplus after the tax. Cconsumer surplus before the tax. producer surplus before the tax. QUESTION 4 4 point Figure Supply Dennd Quantity Q1 02 Q3 Q Qs Refer to Figure. If the government impose a tax...
Question 3 0.33 points Save As (Figure: Price Ceilings and Consumer Surplus) Refer to the figure. There is a price ceiling of $20. What is the value of consumer surplus if all units of the good are allocated to the highest-valued uses? a $200 b. $40 $120 O d. 5210
O False Figure: Price Ceiling price floor on $12 10.50 270 290 310 Reference: Ref 6.1 (Refer to the figure above. If a price floor were set at $12.00, there would be a: Select one: A surplus of 40 units. B. shortage of 40 units. • C. surplus of 20 units. D. shortage of 50 units.