and what woudl be the market consumer surplus and how pwuld you calculate that Simran Bansari & 5.2 Benefit, C...
The table gives the demand schedules for train travel for Ann, Beth, and Cy. What is each traveller's consumer surplus when the price is $4 a kilometre? Price (dollars per kilometre) Quantity demanded (kilometres) Ann Beth What is the market consumer surplus when the price is $4 a kilometre? >>> Answer to 2 decimal places. When the price is $4 a kilometre, Ann's consumer surplus is $1. LOOOO When the price is $4 a kilometre, Beth's consumer surplus is $N....
3. Consumer surplus and price changes Aa Aa . The following graph shows the demand curve for a group of consumers in the market for a mobile phone. Each consumer wants only one mobile phone. Assume that if an individual has a willingness to pay just equal to the market price, he or she will make the purchase. (Notice that on this graph, the demand curve is drawn as a series o steps, but only the rightmost corner of each...
area 3 Hopefully, you understood the material on Consumer Surplus (CS) and Producer Surplus (PS) Now let's use those concepts to quantify the economic Consequences of imposing an Import tariff price of mangos 1 Assume the graphs represent the domestic market of mangos. Determine the following: competitive market equilibrium price would = domestic market supply curve of mangos competitive equilibrium quantity of magos =_ $3/lb. 2. Now assume the world market equilibrium price of mangos = $1.50/lb. and domestic producers...
Demand Curve & Consumer Surplus. Assume the $Price for Puppies is $200. 1. What is the buyer’s optimal (best) quantity demanded, Qd? 2. What Area shows buyer’s net gain or ‘Consumer Surplus’? 3. What Area shows buyer’s Total Dollar Value (Total Willingness to Pay)? 4. What Area shows buyer’s Total Expenditures (spending on good)? 5. Number example of Consumer Surplus: Lara wants to buy a new Surf board. She is willing to spend $650 maximum. The Price of one she...
Use the graph below to answer this question. What is the consumer surplus when the market is in equilibrium? $12 8.15 Supply 65 Demand 220 400 Quantity
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...
Question 15:
how much is the dead weight loss under this market
intervention ?
. U OU? -MUUile Wi-For Questions 1-15. Odur a competitive market for a good where the demand curve is determined the demand function: P = 5+-1'Qd and the supply curve is determined by the supply Function: P-0.5'Os Where P stands for Price, QD is quantity demanded and OS is quantity supplied. 1. What is the quantity demanded of the good when the price level is $47...
For Questions 1-15, consider a competitive market for a good where the demand curve is determined by: the demand function: P = 5+-1*Qd and the supply curve is determined by the supply function: P = 0.5*Qs. Where P stands for Price, QD is quantity demanded and QS is quantity supplied. What is the quantity demanded of the good when the price level is P = $4? QUESTION 2 What is the quantity supplied of the good when the price level...
1. If demand deceases and supply remains constant, what happens to the market equilibrium? A. Quantity and price both rise. B. neither price or quantity will change C. Quantity and price both fall. D. Quantity rises and price falls. 2. A positive statement is A. an opinion B. a value judgement. C. can be shown to be correct or incorrect. D. based upon what can be demonstrated to be true. 3. If a technology change reduces a company's production costs,...
EC202-5-FY 10 9Answer both parts of this question. (a) Firm A and Firm B produce a homogenous good and are Cournot duopolists. The firms face an inverse market demand curve given by P 10-Q. where P is the market price and Q is the market quantity demanded. The marginal and average cost of each firm is 4 i. 10 marks] Show that if the firms compete as Cournot duopolists that the total in- dustry output is 4 and that if...