Question

Suppose that Lucy's demand for private concerts (performed by Schroeder) is given by the equation: Q...

Suppose that Lucy's demand for private concerts (performed by Schroeder) is given by the equation:

LaTeX: Q_D=15-\frac{5}{2}PQ D = 15 − 5 2 P

Now suppose that the cost of concerts is $2. What is Lucy's Consumer Surplus?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Aus: Q = 15-5e le To 12 14 16 Talis 10 15 lol Cost a concert = MC = 42 - Graphically me СолшWA Ямыш 4 117, Peter For quiz Cav

Add a comment
Know the answer?
Add Answer to:
Suppose that Lucy's demand for private concerts (performed by Schroeder) is given by the equation: Q...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Suppose that for a perfectly competitive market the initial demand curve is given by the equation...

    Suppose that for a perfectly competitive market the initial demand curve is given by the equation P = 10 − Q and the supply curve is given by the equation P = 2 + Q. Now, suppose that the only change to this market is that the number of buyers increases, giving rise to a new demand curve that has the same slope as the initial demand curve. (Everything else remains the same.) Then (A) consumer surplus (unambiguously) increases. (B)...

  • now p Suppose that the Supply and Demand of maple syrup are given by Q =...

    now p Suppose that the Supply and Demand of maple syrup are given by Q = 100-P Q = 17 + 8 P If the government sets a binding price floor at P=$80.39, what will be the value of Consumer Surplus? Round your answer to two (2) decimal places if necessary

  • Question 3: Suppose that the demand equation: P- 10-Q and supply equation: P Q a. Calculate...

    Question 3: Suppose that the demand equation: P- 10-Q and supply equation: P Q a. Calculate the equilibrium price and quantity b. Calculate the consumer surplus, producer surplus and total surplus at equilibriunm Suppose the government imposes a tax of $2 for each unit bought. Derive the new equilibrium price that consumers pay, the price that firms receive, and quantity c. d. Calculate the deadweight loss of this tax. e. In a diagram, show the equilibrium in part a and...

  • Suppose that the demand and supply functions are P=10-Q and P=Q respectively. Which of the following...

    Suppose that the demand and supply functions are P=10-Q and P=Q respectively. Which of the following statements are correct for the value of consumer and producer surplus in the equilibrium? Select one or more: a. The value of producer surplus is 25. b. The value of consumer surplus is 15. c. The value of consumer surplus is 12.5. d. The value of producer surplus is 15. e. The value of consumer surplus is 25. f. The value of producer surplus...

  • Suppose that in a perfectly competitive market, demand is given by Q=59.0-P and supply is given...

    Suppose that in a perfectly competitive market, demand is given by Q=59.0-P and supply is given by Q=P-28.0. The government imposes a per-unit excise tax of $1 on the good. What is consumer surplus after that tax is imposed? No units, no rounding.

  • 2. Consider a market where demand is given by Q = 60 – P and the...

    2. Consider a market where demand is given by Q = 60 – P and the marginal cost for every firm is $15. a. Assume the market is perfectly competitive. Find equilibrium price and quantity. Calculate consumer surplus, producer surplus, total surplus, and deadweight loss. b. Now assume that there is only one supplier in the market. Find equilibrium price and quantity. Calculate consumer surplus, producer surplus, total surplus, and deadweight loss. Is total surplus higher or lower compared to...

  • Suppose there are two firms, 1 and 2, competing in quantity. The market demand is p...

    Suppose there are two firms, 1 and 2, competing in quantity. The market demand is p = 15-(q1 +q2), where q1 and q2 are the quantities produced by rms 1 and 2. Both rms have constant marginal cost c1 = c2 = 3. (a) [10] Find the Cournot equilibrium of this market. Compute the consumer surplus in equilibrium. b) Now suppose firms 1 and 2 merge, so that they become a monopolist with demand function p = 15 ? q,...

  • 1)Suppose Demand for Apples (in bushels) is given by Q = 90-P and Supply is given...

    1)Suppose Demand for Apples (in bushels) is given by Q = 90-P and Supply is given by Q = P. The market for apples is dominated by a single, monopolistic firm "NYC Apples". Suppose you could regulate the market for Apples and impose a price ceiling. What price would maximize social welfare (combined producer and consumer surplus)? 2)Suppose Demand for Apples (in bushels) is given by Q = 90-P and Supply is given by Q = P. The market for...

  • 12. Suppose that the market demand for yo-yos is given by Q-6,000-200P. If the market price...

    12. Suppose that the market demand for yo-yos is given by Q-6,000-200P. If the market price of yo-yos is $5 per unit, market consumer surplus is A. $125,000. B. $62,500. C. $25,000. D. None of the above. 13. Market consumer surplus is due to the fact that A. Different con sumers are willing to pay different prices for the same product. B. All consumers pay the same price for the product. C. The supply curve is upward sloping. D. All...

  • 1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is...

    1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is average weekly household income, and that the firm's marginal cost function is given by MC(Q) 2Q. The firm has no fixed costs. = (a) If the average weekly household income is $600, find the firm's marginal revenue function. (b) What is the firm's profit-maximizing quantity of output? At what price will the firm sell that output? What will the firm's marginal cost be? (c)...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT