Suppose that demand for and supply of a commodity in a market are shown on a...
Suppose that demand for and supply of a commodity in a market are shown on a graph with price on the vertical axis and quantity on the horizontal axis. The y-intercept of the demand curve is equal to $30. The equilibrium price and quantity are $24.3 and 147 units respectively. Total Consumer Surplus in this market is ____. Hint: Write your answer to two decimal places.
Homework Answers
Consumer surplus is equal to the area above the equilibrium price and below the demand curve
CS=0.5*147*(30-24.3)
= 73.5*5.7
= 416.10
Add Answer to:
Suppose that demand for and supply of a commodity in a market
are shown on a...
The market for meat is represented by the following demand and supply equations: Demand: Qp = 400 - 10 P Supply: Qs...
The market for meat is represented by the following demand and supply equations: Demand: Qp = 400 - 10 P Supply: Qs = -200 + 20 ⓇP 1. Draw the demand and supply in the same graph where price and quantity on the vertical and horizontal axis respectively 2. Calculate the equilibrium price and quantity 3. Calculate the Consumer and producer surplus at the equilibrium. 4. What would happened to the new equilibrium price and quantity if the price of...
DEMAND & SUPPLY: Consider the market for bananas which is known to be perfectly competitive. The...
DEMAND & SUPPLY: Consider the market for bananas which is known to be perfectly competitive. The market is characterized by the following relationships: QD = 10,000 – 140P QS = 7500 + 125P Plot the demand curve and the supply curve on a graph. Clearly label the axes and the intercepts. Why is the demand-curve downward-sloping? What is the slope of the demand curve? Why is the supply-curve upward-sloping? What is the slope of the supply curve? What is the...
Suppose the following table represents the market demand and supply: Price per apple (P) Quantity demanded...
Suppose the following table represents the market demand and supply: Price per apple (P) Quantity demanded ( $2 $4.5 $8 Quantity supplied (Q) 10 35 70 64 16 a (10 points) Calculate the linear demand function: Q-a -bP. Draw the linear demand in a graph with price in the vertical axis and quantity demanded in the horizontal axis. Label all points including the intercept terms. Calculate the slope of the linear demand function What is the economic meaning of the...
Consider a market with demand and supply functions: Supply function: ? = 40? − 40 Demand...
Consider a market with demand and supply functions: Supply function: ? = 40? − 40 Demand function: ? = 200 − 20? a. Draw the demand-supply curves. Find equilibrium price and quantity. Find consumer surplus, producer surplus, and total surplus in the graph. b. Calculate exact size of consumer surplus, producer surplus, and total surplus, respectively. Welfare effects of a price control. The government sets a price floor at $5. c. Find the market price and quantity traded, and the...
Suppose that the demand curve and supply functions are qD = 300−5p and qS = 100+20p,...
Suppose that the demand curve and supply functions are qD = 300−5p and qS = 100+20p, respectively. (a) On the same graph, draw the demand and supply curves with price on the vertical axis. (b) What is the quantity and price in the equilibrium? (c) Calculate consumer surplus and producer surplus. (d) Suppose the government implements a $5 dollar per unit sales tax. i. Calculate the new quantity and the price paid by the consumer. ii. Calculate the consumer surplus,...
Suppose the current price in a market is below the equilibrium price. Af the current price...
Suppose the current price in a market is below the equilibrium price. Af the current price in the market ea. a shortage exists. Ob. a surplus exists. o . c. equilibrium exists d. disequilibrium exists in the market. ee.a and d The equilibrium price in a market is $10 and the equilibrium quantity is 100 units. The area of consumers surplus is Oa. the area above the supply curve, out to 100 units, and below $10. Ob. the area below...
The following figure illustrates a standard market-demand curve and market-supply curve, with price per unit measured...
The following figure illustrates a standard market-demand curve and market-supply curve, with price per unit measured on the vertical axis and quantity measured on the horizontal axis. Price Demand Supply 0 1 2 3 4 5 6 7 8 9 10 Quantity Figure Description: Quantity demanded and quantity supplied is measured on the horizontal axis and price per unit is measured on the vertical axis. One downward sloping demand curve is provided and is labeled Demand. One upward sloping supply...
11. Total welfare The following graph shows supply and demand in the market for computer keyboards....
11. Total welfare The following graph shows supply and demand in the market for computer keyboards. Use the black point (cross symbol) to indicate the equilibrium price and quantity of computer keyboards. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. Demand Equilibrium A Consumer Surplus PRICE (Dollars per keyboard) Producer Surplus Supply 0 10 90 100 20 30 40 50...
1. When the equilibrium price is 30 and equilibrium quantity is 2000. Intercept of Supply curve in the p axis is 10 and intercept of Demand curve in the p axis is 60. a) Draw the graph of equilibrium...
1. When the equilibrium price is 30 and equilibrium quantity is 2000. Intercept of Supply curve in the p axis is 10 and intercept of Demand curve in the p axis is 60. a) Draw the graph of equilibrium and label the equilibrium price, equilibrium quantity, consumer surplus, producer surplus and total surplus in the graph. b) Calculate consumer surplus, producer surplus and total surplus. c) Explain which buyers consume the good and which producers sell the good inthe equilibrium...
5. Suppose the demand and supply functions are given by QD 15-P Qs- P-5, where QD...
5. Suppose the demand and supply functions are given by QD 15-P Qs- P-5, where QD and Qs are the quantities and P is the price. a) Graph the demand curve and supply curve. [Hint: label each axis, the price and quantity b) Calculate the equilibrium price and quantity; add these values to the graph and label them as c) Suppose demand decreases by 1 unit at each price. What is the new demand function? Add the d) Calculate the...
The market for meat is represented by the following demand and supply equations: Demand: Qp = 400 - 10 P Supply: Qs = -200 + 20 ⓇP 1. Draw the demand and supply in the same graph where price and quantity on the vertical and horizontal axis respectively 2. Calculate the equilibrium price and quantity 3. Calculate the Consumer and producer surplus at the equilibrium. 4. What would happened to the new equilibrium price and quantity if the price of...
Suppose the following table represents the market demand and supply: Price per apple (P) Quantity demanded ( $2 $4.5 $8 Quantity supplied (Q) 10 35 70 64 16 a (10 points) Calculate the linear demand function: Q-a -bP. Draw the linear demand in a graph with price in the vertical axis and quantity demanded in the horizontal axis. Label all points including the intercept terms. Calculate the slope of the linear demand function What is the economic meaning of the...
Suppose the current price in a market is below the equilibrium price. Af the current price in the market ea. a shortage exists. Ob. a surplus exists. o . c. equilibrium exists d. disequilibrium exists in the market. ee.a and d The equilibrium price in a market is $10 and the equilibrium quantity is 100 units. The area of consumers surplus is Oa. the area above the supply curve, out to 100 units, and below $10. Ob. the area below...
The following figure illustrates a standard market-demand curve and market-supply curve, with price per unit measured on the vertical axis and quantity measured on the horizontal axis. Price Demand Supply 0 1 2 3 4 5 6 7 8 9 10 Quantity Figure Description: Quantity demanded and quantity supplied is measured on the horizontal axis and price per unit is measured on the vertical axis. One downward sloping demand curve is provided and is labeled Demand. One upward sloping supply...
11. Total welfare The following graph shows supply and demand in the market for computer keyboards. Use the black point (cross symbol) to indicate the equilibrium price and quantity of computer keyboards. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. Demand Equilibrium A Consumer Surplus PRICE (Dollars per keyboard) Producer Surplus Supply 0 10 90 100 20 30 40 50...
5. Suppose the demand and supply functions are given by QD 15-P Qs- P-5, where QD and Qs are the quantities and P is the price. a) Graph the demand curve and supply curve. [Hint: label each axis, the price and quantity b) Calculate the equilibrium price and quantity; add these values to the graph and label them as c) Suppose demand decreases by 1 unit at each price. What is the new demand function? Add the d) Calculate the...
Most questions answered within 3 hours.
-
An entomologist discovers a dung beetle rolling a ball of dung
along the ground, and decides...
asked 57 minutes ago -
Humans have used horses for transportation for millions of
years. Therefore, they will use horses for...
asked 2 hours ago -
The following are the Jensen Corporation's unit costs of making
and selling an item at a...
asked 3 hours ago -
Does direct Medicare reimbursement of Advanced practice nurses
increase access to their services?
asked 4 hours ago -
List and explain why a company would choose to use a
published
compensation survey vs. creating...
asked 4 hours ago -
A discrete random variable X can take values from 1 to 10. Find
the variance of...
asked 4 hours ago -
The primary financial goal of a corporation is to maximize:
shareholders wealth.
earnings per share.
stock...
asked 4 hours ago -
determine whether the vectors u=(1,2,3,), v=(-2,1,0) and
w=(1,0,1) are linearly dependent or independent.
asked 4 hours ago -
python
Define a function called print_values which takes a dictionary
object as a parameter. The function...
asked 5 hours ago -
In Chapter 1 you created a program named Triangle in
which you displayed a seven-line triangle...
asked 5 hours ago -
Research question: What are the differences between separately
stated and non separately stated transactions in an...
asked 6 hours ago -
By using Arduino write a code that connects two LEDs to two
push-buttons. Each button controls...
asked 7 hours ago