Question

Demand. Supply & Welfare: D) Nick's willingness to sell his homemade chocolate chip cookies is $2 per dozen. He sells them, and realizes producer surplus of Sio per dozen. Nick's cost is per dozen and he sells the cookies for per dozen. a. $10, S12 b. S10, S20 c. $2, S12 d. S2, S10 Price -------- Dad - Quantity 2. In the figure shown, at the Pl price, total consumer willingness to pay is represented by the area a. A b. A+B+C. c. A + B + C + D + E. d. B+C+D+E. e. D+E 3. In the figure shown at the Pl price, total consumer surplus is represented by the area a. A b. A+B+C. c. A + B + C + D + E. d. B+C+D+E. e. D-E 4. If a consumer buys a good we know that her willingness to pay for the good A. Is greater than its price. B. Is less than its price. C. Is equal to its price. D. Is either greater than or equal to its price.

Answer 1

ANSWER:)

1) (c)

2) (c)

3) (b)

4) (D)

o produces suxplus - Actual sell price - willingness to sell price given producer Sweplus = $10 willingness to sell price = $ 2 so, Actual sell posice - Producer surplus + willingness to sell Actual sell - 10 +2... Actual sell price $12 ] Nick's cost is $2 pes dozen and he sells the cookies for $12 per dozen. Answer: © $2,$ 12 $127 demand Total consumer willingness to pay area under the curve. owhen price is P then total consumer willing helf equall to area of 1A+ B+ C+D+E). to pay Answer:- A + B + C + D +E Sobe consumer surpres :- consumer Surplus Ex represented by area under the downwaled - stopind demand culive aud area above the actual market price .or . [Consumer surplug = willingness to pay - Actual page) . when market price at Pe, then in given graph total consumer surplus is represented by the area A+B+cl. Auswer?- 6 A+B+C sofa willingness to pay for the good is eighther greater than or equal to its price. Answer is either greater than or equal to lita price