1. Consider a market where the demand is given by QD = 120 -P and supply is given by QS =÷P. What are the consumer and producer surplus? a) Consumer surplus is 120 arnd producer surplus is 600. b) Consumer surplus is 600 and producer surplus is 1200. c) Consumer surplus is 240 and producer surplus is 300. d) Consumer surplus is 1200 and producer surplus is 240.

1. Consider a market where the demand is given by QD = 120 -P and supply is given by QS =÷P. What are the consumer and producer surplus? a) Consumer surplus is 120 arnd producer surplus is 600. b) Consumer surplus is 600 and producer surplus is 1200. c) Consumer surplus is 240 and producer surplus is 300. d) Consumer surplus is 1200 and producer surplus is 240.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section: Chapter Questions

Problem 5WNG

See similar textbooks

Similar questions

What is the relationship between total surplus and economic efficiency?
What is producer surplus? How is it illustrated on a demand and supply diagram?
What is consumer surplus? How is it illustrated on a demand and supply diagram?
DATE 4.1 The demand equation por a product is : 0.01g* - 19 t 100 t 83 and the supply equation is: P 0.049? t is al Determine consumers surplus under marret equilibirium b.) Graph the equilibirium using www.desmos.com of your own graph c.) C-) Give an explanation based on answer a b.
Total surplus is maximized at the equilibriumprice and quantity. When demand increases,price increases. Explain how total surplus is stillmaximized if price increases due to an increase indemand
The demand function for a certain product is? = 86 − ?2and the supply function is? = ?2 + 6? + 30where p is in millions of dollars and x is the number of thousands of units. Find the equilibriumpoint (x, p), then find the consumer’s surplus and producer’s surplus. Round your answer to thenearest unit (the nearest million dollars).
1. Suppose that the demand curve for a particular high-end designer purse in a medium-sized city is given by P = 600 – 0.01Q? and supply is P= 100+0.04Q², where price is in dollars and quantity is in numbers of purses. a. Find the equilibrium price and quantity. b. Calculate the consumer and producer surplus at the equilibrium price. in
The attached figure shows Rosa's demand for ice cream. If the price of ice cream were $2 per litre, then Rosa's consumer surplus for the 4th litre: (a) Is greater than the surplus for the 8th litre. b) Is the same as the surplus on the 8th litre. c) Is less than the surplus on the 8th litre d) It could be greater than, equal to or less than the surplus of the 8th litre. Note: Please make your calculations to get the correct answer
Suppose that last year the equilibrium price and the quantity of good X were $10 and 5 million pounds. Because of strong demand this year, the equilibrium price and the quantity of good X are $12 and 7 million pounds, respectively. Assuming that the supply curve of good X is linear, what happened to producer surplus in the market? A B Producer surplus increased from $12.5 million to $49 million. Producer surplus increased from $12.5 million to $24.5 million. Producer surplus increased from $3 million to $7 million. Producer surplus increased from $4.2 million to $5.6 million. C D
Only typed answer Find the consumer surplus. Supply: Q=2P. Demand: Q=100-5P
What is the consumer surplus? A) $40 million B)$50 million C)$60 million d)$70 million
If demand is P = 60 - 2Q and supply is P = 20 + 3Q, what is the value of the Consumer Surplus? Enter as a value. Previous Next