3. This question assumes that the market for apartments in Sydney is perfectly competitive. (a) Evaluate the decision of the NSW government to double the first home buyer subsidy in terms of Pareto efficiency and fairness. (b) Now suppose the NSW government decides not to help first home buyers in Sydney any longer and removes the existing subsidy. Evaluate this decision in terms of Pareto efficiency and fairness.

3. This question assumes that the market for apartments in Sydney is perfectly competitive. (a) Evaluate the decision of the NSW government to double the first home buyer subsidy in terms of Pareto efficiency and fairness. (b) Now suppose the NSW government decides not to help first home buyers in Sydney any longer and removes the existing subsidy. Evaluate this decision in terms of Pareto efficiency and fairness.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3)Refer to the diagram below. Which price maximizes the sum of consumer and producer surplus? * a)$1.50 b)$2.50 c)$3.75 d)Any price greater than $3.75
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V surplus is the difference between the highest price a consumer is willing to and the price the consumer actually pays. This component of economic surplus is illustrated in the diagram to the right by area Do Quantity (per time period)
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8. When a package of 4 units is sold for a total price of 20 to a buyer of type 1 , the consumer surplus to that buyer from buying this package is________________. a ) 20 b ) 36 c ) 24 d ) 42 e ) 12 9. When at most one package of 4 units is available for a total price of 20 , the maximum price that a buyer of type 1 would pay for a package of 12 units is_____________. a ) 84 b ) 96 c ) 120 d ) 114 e ) 56
Analyze the following statements and categorize them into Determinants of Demand(DD) or Determinants of Supply (DS)._________6. There is a change in Quantity Supplied because of the increasing cost ofproduction.
1. Define "consumer surplus" and "producer surplus." Consumer surplus (CS) is the benefit surplus received by a consumer or consumers through market transactions. A CS arises because all consumers pay the equilibrium price even though some consumers would be willing to pay more. CS is measured as the difference between the (maximum. minimum ) price a consumer is (or consumers are) willing to pay (WTP) ( plus, minus , the same as ) the actual price. Consumer surplus is (directly, inversely) related to price. Producer surplus (PS) is the benefit surplus received by a producer or producers through market transactions. A PS arises because some producers are willing to sell a product at a lower price than the equilibrium price. PS is measured as the difference between the actual price the producer receives (or producers receive) and the (maximum, minimum ) price a producer is (or producers are) willing to accept (WTA) as a selling price. Producer surplus is directly, inversely) related to…
PQ 8.05 Your local music venue has a capacity of 70 people. Suppose the venue decreases the price of a ticket from $20, at which 50 tickets are sold, to $15, and it sells 70 tickets. The price decrease caused an increase in total consumer surplus of $ this scenario out before trying to calculate). -- (Hint: draw Type your numeric answer and submit