12.Ans: consumer surplus decreases by ( B + C)
Explanation:
At equilibrium price, Consumer surplus = A + B + C
At new price $10 , New consumer surplus = A
So decrease in consumer surplus by = ( A + B + C ) - A = B + C
13.Ans: consumer surplus is $40
Explanation:
Consumer surplus = 1/2 ( height * base) = 1/2{ ( $14 - $10 ) * 20 } = 1/2 ( $4 * 20) = 1/2 * $80 =$40
24.Ans: some surplus is transferred from producer to consumer.
Explanation:
Areas of C + D+ F + G from producer's surplus are transfered to consumer.
26.Ans: E
28.Ans: A
31.Ans: $10
Explanation:
Tax per unit = After tax market price - After tax price received by the seller
= $ 16 - $6
= $10
Skipped F WE--- According to the graph shown, if the market goes from equilibrium to having...
According to the graph shown, if the market goes from equilibrium to having its price set at $10: Multiple Choice O deadweight loss will occur. seven fewer units will be exchanged O ) consumer surplus will decrease. O < Page 18 of 35 18 Next > According to the graph shown, if the market goes from equilibrium to having its price set at $10 Multiple Choice o deadweight loss will occur. o seven fewer units will be exchanged. o consumer...
$12 $10 $2 10 rding to the graph shown, if the market goes from equilibrium to having its price set at $10: market transactions will decrease by 7. B. market transactions will decrease by 3. C. market transactions will decrease by 10. D. market transactions will not change, only price has changed. 5. 103. $12 $2 10 According to the graph shown, if the market is in equilibrium, consumer surplus is: A. $30 B. $20. C. $50 D. $60. 6....
204757 The graph shown best represents: Multiple Choice O a missing market. O a binding price ceiling. a binding price floor. a market for an inferior good. C D LG 20 47 57 If a price floor of $23 were placed in the market in the graph shown, which area represents deadweight loss? Multiple Choice Ο Β+ C+E+F Ο Ο C+D+ F Ο C+F Ο
$12 $10 $6 $4 $2 DE 10 According to the graph shown, if the market goes from equilibrium to having its price set at $10 then: A. $12 gets transferred from consumer surplus to producer surplus. B. area C is lost surplus due to fewer transactions taking place. C. area E is lost surplus due to fewer transactions taking place. All of these are true.
A city the has the following market equilibrium for rental apartments. Use the graph to answer the questions below Market for Rental Apartments Price 5315 500 1000 3400 Quantity et Rental Units (1) Find consumer surplus and the producer surplus that exist at the equilibrium rent of SS3 Is there a deadweight loss? Find if a * Consumer Surplus - Total art of A, B and C & Producer Supples = Totul ano of D, E, F * There is...
only letter e and f 18. Graphically illustrate the market for a good in competitive equilibrium (be sure to label S. D, P. and O) Shade and label the areas that measure consumer surplus, producer surplus, and deadweight loss (if there is any DWL). a. Is this market efficient? Why? b. Now assume that the market price falls below the equilibrium price (NOT as a result of a change in supply or demand). Redraw your graph below and illustrate this...
050105 Consider the market shown below: If a price ceiling of $8 per unit were placed on this market, which area would represent producer surplus? O C + D +E O C+D+F+G Ο Ε O A + C + E
wanna check final answer I already did it Taxation Suppose now the government decides to intervene the market with a tax on producers of $4, determine the price for the consumer, the g. price for the producer, and the quantity produced with the tax Draw a graph (Diagram 4) representing the market for Hallowcen costurmes with a tax on producers of $4. Accurately label and show the h. area for consumers (CS), producer surplus (PS), deadweight loss (DWL), and government...
According to the following Figure, please answer a-f: 20 40 60 a) According to this graph, how much is the consumer surplus when price is set at equilibrium (P = $8)? b) According to this graph, how much is the producer surplus when price is equal to its equilibrium level (P=$8)? c) In the graph, how much is deadweight loss at a price of P =$8 (equilibrium)? d) Now, according to this graph, how much is the consumer surplus when...
4. Market demand is given as QD-210-3P. Market supply is given as QS competitive equilibrium, what will be the value of consumer surplus? a. $1400 2P+50. In a perfectly b. $2166 .$3267 d. $6538 5. Orange juice and apple juice are substitutes. Suppose bad weather sharply reduced the orange harvest. What would the impact be? a increase consumer surplus in the market for orange juice but decrease producer surplus in the market for apple juice b. increase consumer surplus in...