1. The area below the price and above the supply curve measures the producer surplus in...
1. The area below the price and above the supply curve measures the producer surplus in a market.
| True | |
| False |
The more inelastic are demand and supply, the greater is the deadweight loss of a tax.
| True | |
| False |
Homework Answers
The area below the price and above the supply curve is producer surplus while area below the price and demand curve is consumer surplus.
Hence True
Higher inelasticity leads to lower correlation between price and demand. Hence lower impact of tax. Hence lower dead weight loss.
Hence False
Add Answer to:
1. The area below the price and above the supply curve measures
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5. Consumer surplus, producer surplus, and deadweight loss with quantity restrictions The following graph shows the supply of (orange curve) and demand for (blue curve) DVD players. Determine the equilibrium price and quantity of DVD players. Based on this, use the green triangle (triangle symbols) to shade the area representing consumer surplus at the equilibrium price. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus at the equilibrium price. 200 180 Demand Consumer Surplus Producer...
Question 9 Consumer surplus is the area below the supply curve and above the equilibrium price....
Question 9 Consumer surplus is the area below the supply curve and above the equilibrium price. above the supply curve and below the equilibrium price. below the demand curve and above the equilibrium price. below the demand curve and above the supply curve. above the demand curve and below the equilibrium price.
6. Producer surplus and price changes The following graph shows the supply curve for a group...
6. Producer surplus and price changes The following graph shows the supply curve for a group of students looking to sell used smartphones. Each student has only one used smartphone to sell. Each rectangular segment under the supply curve represents the "cost," or minimum acceptable price, for one student. Assume that anyone who has a cost just equal to the market price is willing to sell his or her used smartphone. (? 480 400 DO Neha 320 0 Lorenzo PRICE(Dollars...
QUESTION 38 On a graph, producer surplus is represented by the area A. below the demand...
QUESTION 38 On a graph, producer surplus is represented by the area A. below the demand curve and above price. O B. between the demand and supply curves. C. below the price and above the supply curve. D. below the supply curve and to the left of equilibrium quantity.
Explain the impacts to the consumer surplus, producer surplus, and deadweight loss if the price floor...
Explain the impacts to the consumer surplus, producer surplus, and deadweight loss if the price floor is below the equilibrium price? w Market demand is given as Qd 100 - 2P and market supply is given as Qs = P + 10. The equilibrium price is $30 and the equilibrium quantity is 40 units. At a price ceiling of $19, calculate the deadweight loss. Answer:
6. Producer surplus and price changes The following graph shows the supply curve for a group of students looking to sell used economics textbooks.
6. Producer surplus and price changes The following graph shows the supply curve for a group of students looking to sell used economics textbooks. Each student has only one used textbook to sell. Each rectangular segment under the supply curve represents the "cost," or minimum acceptable price, for one student. Assume that anyone who has a cost just equal to the market price is willing to sell his or her used textbook. Region A (the purple shaded area) represents the total producer...
1 Consumer surplus is defined as the: gap between the supply curve and the market price....
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Suppose that the demand curve for sorghum is Q = 120 - 6p and the supply curve is Q=15p. The government imposes a price ceiling of P_{c} = 3 a. What effect does this have on the equilibrium quantity, consumer surplus, producer surplus. and deadweight los
Suppose that the demand curve for sorghum is Q = 120 - 69and the supply curve is Q=15p. The government imposes a price ceiling of P_{c} = 3a. What effect does this have on the equilibrium quantity, consumer surplus, producer surplus. and deadweight loss?b. Who wins and who loss
Assume: Demand Curve: QD = 80 – 10P; and Supply Curve: QS = 10P 7. Given...
Assume: Demand Curve: QD = 80 – 10P; and Supply Curve: QS = 10P 7. Given the information derived above, identify on the graph consumer surplus and producer surplus for each situation as well as deadweight loss, if any. b. Government imposes a minimum price of $6.00 Calculate and assess (describe the impact) of the following: 1. Consumer Surplus 2. Producer Surplus 3. Deadweight Loss 4. Total Surplus 5. Government Revenue 6. Is the market operating efficiently: Yes or No....
Is the area found above market price and below the demand curve Producer surplus Quantity demanded Consumer surplus Social surplus
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Question 9 Consumer surplus is the area below the supply curve and above the equilibrium price. above the supply curve and below the equilibrium price. below the demand curve and above the equilibrium price. below the demand curve and above the supply curve. above the demand curve and below the equilibrium price.
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QUESTION 38 On a graph, producer surplus is represented by the area A. below the demand curve and above price. O B. between the demand and supply curves. C. below the price and above the supply curve. D. below the supply curve and to the left of equilibrium quantity.
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