3. Consumer surplus for a group of consumersThe following graph plots the demand curve (blue line) for several consumers in the market for motor scooters in Meadville, a small town located inPennsylvania. The Headville market price of a motor scooter is given by the horizontal black line at $180.Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Gilberto, green(triangle symbols) for Juanita, purple (diamond symbols) for Lorenzo, tan (dash symbols) for Neha, and blue (arde symbols) for Sam. Use therectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a motor scooter at a market price of$150 (Note: If a person will not purchase a motor scooter at the market price, indicate this by leaving his or her rectangle in its original position onthe palette)8G88PRICE (Doters per motor scooter882408GibertoJuanLorenzoNehaSam1QUANTITY (Motor scooters)Market PriceBased on the information on the previous graph, you can tell thatconsumer surplus in this market will be sLorenzoNehaSamwill buy motor scooters at the given market price, and total Suppose the market price of a motor scooter increases to $300.On the following graph, use the rectangles once again to shade the areas representing consumer surplus for each person who is willing and able topurchase a motor scooter at the new market price: orange (square symbols) for Gilberto, green (triangle symbols) for Juanita, purple (diamondsymbols) for Lorenzo, tan (dash symbols) for Neha, and blue (circle symbols) for Sam. (Note: If a person will not purchase a motor scooter at thenew market price, indicate this by leaving his or her rectangle in its original position on the palette.)PRICE (Dolars per motor scooter)1000RRS120GibertsJuanitaLorenzoNeha*.QUANTITY (Molor scouter)Market Price.GibertoJuanitaLorenNehaSamBased on the information in the second graph, when the market price of a motor scooter increases to $300, the number of consumers willing to buy amotor scootertoand total consumer surplus

Consumer surplus:Consumer surplus is the gain of the consumer when the price the consumer is willing…

3. Consumer surplus for a group of consumers The following graph plots the demand curve (blue line) for several consumers in the market for motor scooters in Meadville, a small town located in Pennsylvania. The Headville market price of a motor scooter is given by the horizontal black line at $180. Each rectangle you can place on the following graph corresponds to a particular buyer in the market: orange (square symbols) for Gilberto, green (triangle symbols) for Juanita, purple (diamond symbols) for Lorenzo, tan (dash symbols) for Neha, and blue (circle symbols) for San. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a motor scooter market price of $150 (Note: If a person will not purchase a motor scooter at the market price, indicate this by leaving his or her rectangle in its original position on the palette) PRICE (Doters per mater scooteg 8 88 8 Gaberto Juan Lorenzo Neha Sam 1 QUANTITY (Motor scooters) Market Price ased on the information on the previous graph, you can tell that onsumer surplus in this market will be Lorenzo Sam will buy motor scooters at the given market price, and total

3. Consumer surplus for a group of consumers The following graph plots the demand curve (blue line) for several consumers in the market for motor scooters in Meadville, a small town located in Pennsylvania. The Headville market price of a motor scooter is given by the horizontal black line at $180. Each rectangle you can place on the following graph corresponds to a particular buyer in the market: orange (square symbols) for Gilberto, green (triangle symbols) for Juanita, purple (diamond symbols) for Lorenzo, tan (dash symbols) for Neha, and blue (circle symbols) for San. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a motor scooter market price of $150 (Note: If a person will not purchase a motor scooter at the market price, indicate this by leaving his or her rectangle in its original position on the palette) PRICE (Doters per mater scooteg 8 88 8 Gaberto Juan Lorenzo Neha Sam 1 QUANTITY (Motor scooters) Market Price ased on the information on the previous graph, you can tell that onsumer surplus in this market will be Lorenzo Sam will buy motor scooters at the given market price, and total

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The table shows the demand and supply schedules for hamburgers. If the quantity demanded of hamburgers decreases by 40 per hour at each price, the new price of a hamburger is $ Total surplus by $
Find the consumers’ surplus and the producers’ surplus at the equilibriumprice level for the given price–demand and price–supply equations and draw the graph. (You may round all values to the nearest integer). p = D(x) = 185e-0.005x p = S(x) = 25e 0.005x
. Individual and market demand Suppose that Eric and Ginny are the only consumers of pizza slices in a particular market. The following table shows their weekly demand schedules: Price Eric’s Quantity Demanded Ginny’s Quantity Demanded (Dollars per slice) (Slices) (Slices) 1 6 16 2 3 12 3 2 8 4 1 6 5 0 4 On the following graph, plot Eric’s demand for pizza slices using the green points (triangle symbol). Next, plot Ginny’s demand for pizza slices using the purple points (diamond symbol). Finally, plot the market demand for pizza slices using the blue points (circle symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. ( the graph has attached as an image)
PRICE (Dollars per pastry) 9.00 8.25 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 1.50 0.75 0 Price Supply 0 2 + 4 6 Kenji's Weekly Supply A 8 10 12 14 16 QUANTITY (Pastries) 18 20 22 24 Using the previous graph, you can determine that Kenji is willing to supply his 6th weekly pastry for $ the producer surplus earned from supplying the 6th pastry is $ Since he receives $2.25 per pastry, Suppose the price of pastries were to rise to $3.00 per pastry. At this higher price, Kenji would receive a producer surplus of $ pastry he sells. from the 6th
Homework (Ch 07) The following graph shows the supply curve for a group of sellers in the U.S. market for smartphones (orange line). Each seller has only one smartphone to sell. The market price of a smartphone is shown by the black horizontal line at $105. Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Jacques, green (triangle symbols) for Kyoko, purple (diamond symbols) for Musashi, tan (dash symbols) for Rina, and orange (square symbols) for Sean. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a smartphone at a market price of $105. (Note: If a person will not sell a smartphone at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) ? 240 210 Sean Jacques 180 150 Kyoko 120 90 Musashi 60 C O PRICE (Dollars per smartphone)…
Hand written solutions are strictly prohibited
Suppose Rajiv is the only seller in the market for bottled water and Kevin is the only buyer. The following lists show the value Kevin places on a bottle of water and the cost Rajiv incurs to produce each bottle of water: Kevin's Value Value of first bottle: $10 Value of second bottle: $7 Value of third bottle: $3 Value of fourth bottle: $1 The following table shows their respective supply and demand schedules: Price $1 or less $1 to $3 $3 to $7 $7 to $10 More than $10 Quantity Demanded Quantity Supplied 4 3 2 1 0 0 1 2 3 Cost of first bottle: $1 Cost of second bottle: $3 Cost of third bottle: $7 Cost of fourth bottle: $10 4 Rajiv's Costs Use Rajiv's supply schedule and Kevin's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $6, and $9. Enter these values in the following table.
2. Below is a tabular data of price and quantity demand and quantity supply for banana que. 10 40 5 50 10 15 30 30 20 20 25 10 Qd Qs 20 40 50 Using the appropriate method for the given data set, derive the following a) demand and supply equation in terms of Q-f(P) b) equilibrium price and equilibrium quantity using the appropriate method c) compute for the consumer's surplus then graph d) compute for the producer's surplus then graph e) if the price changes from P15 to P17, how much is the change in consumer's and producer's surplus? f) what is the economic surplus? Show your solution e) if government imposed tax of P2 per unit of product in the supply side, what is the new price with tax and new equilibrium quantity with tax?
#10: The quantity demanded x (in units of a hundred) of the Mikado miniature cameras per week is related to the unit price p (in dollars) by p= -0.2x² + 80 and the quantity x (in units of a hundred) that the supplier is willing to make available in the market is related to the unit price p (in dollars) by p = 0.1x² + x + 40. If the market is set at the equilibrium price, find the consumers' surplus and the producers' surplus.
Suppose that you decide to start a new business of making children’s ready-made garments. Make a (Hypothetical) linear supply schedule with 7 different price points and corresponding quantity supplied for your business. Make a graph showing equilibrium, shortage and surplus in the ready-made garments market. Give interpretation of this graph. Suppose cheap ready-made garments are imported from China. Draw a graph to show changes in equilibrium price and quantity for the Pakistani ready-made garments market. Give interpretation of this graph. Suppose that to boost the local industry, the Pakistani government gives subsidy on electricity prices. Draw a graph to show changes in equilibrium price and quantity. Give interpretation of this graph. Suppose that cheap cloth is imported from China for production of readymade garments and at the same time tourism in Pakistan increases bringing many more buyers of ready-made garments in the market. What will be impact on equilibrium price and…
14. Over the past few year’s consumer tastes and the number of buyers in the market for a game called ‘pickle ball’ have increased dramatically. Thus, the demand for tickets to pickle ball events has increased. Before this all started the equilibrium price of a ticket to a pickle ball event was negative. This means that: A few years ago, there would have been a surplus of tickets even at a price of zero, now the invisible hand has pushed prices to greater than zero. A few years ago, the quantity of tickets demanded was less than quantity supplied. Pickle ball event tickets resembled the market for recyclable cardboard a few years ago Greater demand for pickle ball tournament tickets will lead to a greater demand – and higher pay – for professional pickle ball players. All of the above. B and D only
6. Individual and market supply Suppose that Paolo and Sharon are the only suppliers of ice cream cones in a particular market. The following table shows their monthly supply schedules: Price (Dollars per cone) PRICE (Dollars per cone) 6 5 2 0 1 0 2 3 4 5 Paolo's Quantity Supplied (Cones) 0 On the following graph, plot Paolo's supply of ice cream cones using the green points (triangle symbol). Next, plot Sharon's supply of ice cream using the purple points (diamond symbol). Finally, plot the market supply of ice cream cones using the orange points (square symbol). (?) 4 8 4 12 6 7 8 18 QUANTITY (Cones) Sharon's Quantity Supplied (Cones) 5 9 20 12 24 14 15 Paolo's Supply Sharon's Supply E Market Supply es Now, suppose that Sharon's twin brother, who has an identical cost structure and ice cream cones supply curve as Sharon, moves to the area, adding another producer to this market. As a result, there will be a the market supply curve because there will be a change in quantity supplied