Homework Answers
When the price = $5:
Producer surplus = Area of the triangle shown above = 0.5 * base * height = 0.5 * 5 * $5 = $12.5
When the price = $8:
Producer surplus = Area of the triangle shown above = 0.5 * base * height = 0.5 * 8 * $8 = $32
Change in producer surplus when the price increases from $5 to $8 = $32 - $12.5 = $19.5
When Price = $5, Quantity supplied = 5 units; When Price = $8, Quantity supplied = 8 units.
As the percentage change in the price is equal to the percentage change in the quantity supplied, the price elasticity of supply is 1(unit elastic)
Ans: $19.5; 1
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C) Suppose that there was a change in the demand so that
the new demand curve is now: P=15 – 2Q. What is the new equilibrium
price and quantity? Draw this on the diagram and call it B. Is the
Point A still Pareto efficient? Why or why not?
Explain.
Demand Curve: ?? = 15 − 2?
Supply Curve: ?? = ? + 3
At Equilibrium: ?? = ??
Therefore, to find Quantity: 15 – 2? = ? + 3...
5. Producer surplus for a group of sellers The following graph shows the supply curve for a group of sellers in the U.S. market for laptops (orange line). Each seller has only one laptop to sell. The market price of a laptop is shown by the black horizontal line at $175. Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Kenji, green (triangle symbols) for Lucia, purple (diamond symbols) for Paolo, tan...
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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On here I have to calculate the consumer surplus Change and on the
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