Consider the market for shoes. The current price of a pair of plain white socks is $100. Two consumers, Jeff and Samir, are willing to pay $125 and $105.00, respectively, for a pair of shoes. Two shoe manufacturers are willing to sell plain white socks for as little as $50.00 and $85 per pair. What is the total producer and consumer surplus (i.e., social welfare) in this market? $30 $95 565 cannot be deermined from the given data
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- Consider the market for computers. The current price of dell computer is $1200.00. Two consumers, Jeff and Peter, are willing to 1,500 and 1,500, for a new computer. Two electronic stores are willing to sell the dell computers for as little as 1,200 and 1,000 each. What's the total producer surplus in this market?Consider the market for socks. The current price of a pair of plain white socks is $5.00. Two consumers, Jeff and Samir, are willing to pay $7.25 and $8.00, respectively, for a pair of plain white socks. Two sock manufacturers are willing to sell plain white socks for as little as $4.00 and $4.15 per pair. How much is total consumer surplus in this market? A) $5.25 OB) $2.25 OC) $0.75 OD) $3.00At 10 million hours, what areas make up the total economic surplus in this market?
- solve Refer to the figure below. What is total consumer surplus at the market equilibrium? Price ($/pound) 11 10 9 8 7 3 Supply 3 2 1 0 0 10 20 30 40 50 60 70 80 O $80 per day O $240 per day O $6 per day O $160 per day Demand Quantity (pounds of cheese/day)Chin purchases five protein bars at a price of $3 each. The marginal benefit he receives from each bar is $5 for the first bar, $4.50 for the second bar, $4 for the third bar, $3.50 for the fourth bar, and $3 for the fifth bar. The marginal cost of producing the bars is $2 each. What is Chin's consumer surplus on the fifth bar?Figure 15-11In 2011, Verizon was granted permission to enter the market for cable TV in Upstate New York, ending the virtual monopoly that Time Warner Cable had in most local communities in the region. Figure 15-11 shows the cable television market in Upstate New York.Refer to Figure 15-11. Following the entry of Verizon, the subscription price falls from PM to PC. What is the increase in consumer surplus as a result of this change? Choix de groupe de réponses the area A + B + C the area D + F the area B + C the area B + C + D
- The following table displays the marginal costs (MC) of Les, the sole producer in the market, and the marginal benefits (MB) of Eddie, the sole consumer in the market: Quantity of Guitars 1 2 3 4 5 6 7 MC of Les 800 1000 1200 1500 1800 2200 2700 MB of Eddie 2700 2200 1800 1500 1200 1000 800 Assume now that Leo, the minister of guitars, sets a price floor at $1800. What is the market deadweight loss?Define Consumer and Producer Surplus and illustrate them graphically.The diagram to the right illustrates the supply curve for hot dogs by Frank's Frankfurters, a local hot dog producer. Calculate the dollar value of producer surplus if equilibrium price is $0.40 per dozen. Supply of Hot Dogs 2.00- 1.80- 1.) Using the point drawing tool, find the quantity 1.60- S that Frank's Frankfurters is willing to supply if equilibrium price is $0.40 per dozen. 2.) Using the triangle drawing tool, illustrate the amount of producer surplus that Frank receives if equilibrium price is $0.40 per dozen. Carefully follow the instructions above and only draw the required objects. Price per dozen ($) 1.40- 1.20- 1.00- 0.80- 0.60- 7 0.40- 0.20 0.00 0 20 30 40 50 60 70 80 90 Quantity of hot dogs per month (millions) C
- For each scenario, decide whether it results in a producer or consumer surplus. Then calculate the resulting surplus. Alice is willing to spend $30$30 on a pair of jeans and has a coupon for $10$10 off. She purchases a pair of jeans that costs $35$35 pre-discount. Alice receives a Alice's surplus: $ Jeff finds steak in the supermarket priced at$16$16 but that he would have been willing to pay $20$20 for. The butcher notices the meat is near the expiration date and gives him an extra 7575% off. Jeff receives a producer surplus. consumer surplus. Jeff's surplus: $ Nicole has a hockey puck from the 2018 Winter Olympic Games and puts it up for sale on eBay. She will only sell the puck if the winning bid is greater than or equal to $500$500. After the bidding closes, the last bid stands at $501$501. Nicole receives a Nicole's surplus: $With relevant examples distinguish between: (i) Producer's and Consumer's surplus, (ii) Maximum and Minimum PriceThere are two consumers, Andy and Ben, in the market for pumpkins. Their willingness to pay for each pumpkin is shown in the table Pumpkin Market. There are two producers of pumpkins, Cindy and Diane, and their costs are also shown. The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5. At the equilibrium price and quantity, Cindy sells pumpkins, and her producer surplus is______ Andy's Quantity of willingness to Pumpkins pay 1st pumpkin $12 2nd pumpkin 3rd pumpkin 8 4th pumpkin 6 A) four; $2 10 B) three; $81 C) two: $ D) one; $5 Ben's willingness Cindy's to pay cost $11 9 7 5 $3 00 10 Diane's cost $4 11