ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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A consumer has inverse demand of
p=15−1q
for a good and the market
$4.00.
Calculate
Consumer surplus is $enter your response here.
(Enter your response rounded to two decimal places.)
The consumer's expenditure for the good is
$enter your response here. (Enter your response rounded to two decimal places.)
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- 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 Meade, a small town located in Kansas. The Meade market price of a motor scooter is given by the horizontal black line at $80. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Dmitri, green (triangle symbols) for Frances, purple (diamond symbols) for Jake, tan (dash symbols) for Latasha, and blue (circle symbols) for Nick. Use the rectangles 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 $80. (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 (Dollars per motor scooter) 160 140 120 Dmitri Frances Jake 100 80 60 40 20 Dmitri Frances Market Price…arrow_forwardRefer to Question 4b. The producer surplus for theater movies is $_____. Do not forget to round to two decimal places, input the decimal point and two places to the right of the decimal point, and place a comma, if needed.arrow_forward16- What is the price elasticity of supply for a good that sees a 1% increase in quantity supplied for a 5% increase in price? 0.2 1 4 5 6arrow_forward
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- 6. Consumer Surplus Valerie buys an iPhone for $240 and gets a consumer surplus of $160. Her willingness to pay for an iPhone is $ If she had bought the iPhone on sale for $180, her consumer surplus would have been $ If the price of the iPhone had been $450, her consumer surplus would have been $arrow_forwardThe graph shows the demand curve and the supply curve in the market for newpapers. Draw a horizontal line at a price at which there is a surplus of newpapers. Label it Surplus.arrow_forwardPQ 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 submitarrow_forward
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