Question

Too. B foxto x = (40-10) xboxt-900 7) In the market for used cars assumere there are 4 conusmers (A,B,C and D) and 4 sellers (Q,R,S and T). The marginal benefit that each consumer gets if she were to purchase the car is given below. The marginal cost for each additional car for each seller is is also given in the table below. MC MB $8000 $6000 $2500 $7000 $6500 IC $3000 $4000 $5000 MB is also called MC is also referred to as Draw the MB curve (Demand curve) and MC curve (Supply curve) for this market. What is equilibrium quantity and price of a used car in this market? Which consumers and producers will be part of the market outcome? Calculate Total surplus at equilibrium. S D R 8) The cost of producing flat-screen TVs has fallen over the past decade. Let's consider some implications of this fact. a. Draw a supply-and-demand diagram to show the effect of falling production costs on the price and quantity of flat-screen TVs sold. b. In your diagram, show what happens to consumer surplus and producer surplus.

Please help me with the Q7

Answer 1

Solving first 4 parts as per Chegg policy. Please post rest separately. Thank you.

A. MB is also called Marginal Utility

B. MC is also referred as Variable Cost

C. MB and MC curves are shown below

Demand And Supply 8000 Demand Supply 7000 6000 A 5000 4000 3000 1 1.5 1.5 2 2.5 2.5 3 3.5 3.5 4

Equilibrium quantity and equilibrium prices are 2.57 and 5429. These are the points were the demand and supply curves intersect. Quantity is on X-axis while demand is on y-axis

D. Consumers A and B and will be part of the market as they derive the highest utility and their utility is higher than 5429.

Producers R and T will be part of the market as their costs are below 5429.