Andy buys a new floor mat for his car for $198 and receives consumer surplus of $53 on the purchase. His willingness to pay (in $) for the floor mat is therefore? The result should be an integer number, no decimals (e.g. if the result is 3.67, write 4.) Your Answer:

c) At the market price in part a, the net gain to consumers when 10,000 units are purchased is $__________.

D(x) is the​ price, in dollars per​ unit, that consumers are willing to pay for x units of an​ item, and​ S(x) is the​ price, in dollars per​ unit, that producers are willing to accept for x units. Find ​(a​) the equilibrium​ point, ​(b​) the consumer surplus at the equilibrium​ point, and ​(c​) the producer surplus at the equilibrium point.   ​D(x)=(x−9)^2​, ​S(x)=x^2+6x+57

(II) The consumer has the income m = 50 and prices of the two goods are p 1 = 5 and p2 = 2. (a) Find the budget set of this consumer. What is the opportunity cost of good 2 in terms of good 1? (b) Suppose the price of good 2 increases to p 2' = 10. What is now the budget set. (c) Suppose now that also income increases to m = 250 and that the price of good 1 increases to 25. What is now the budget set? Compare with the budget set you found in (a) and comment!

How can I solve task 9?

2. Consider an individual who not only consumes goods x and y, but also needs a mini- mum amount of x = xo to survive. Her (Stone-Geary) utility function is given by U(x, y) = (x − x₁)¹/2y¹/2 Let prices be pa, Py and income is I > Prxo.

Anderson is willing to pay $12. Kendrick can provide the item for $10, but producing the item imposes a cost of $8 on Talib. If Anderson purchases the item from Kendrick for $11, what is the total surplus from the transaction? (Remember, do not enter the $, and enter the - if TS is negative.)

Thankyou!

Assume the market clearing price is $5.00 for deli sandwiches and the amount of exchange that would take place at that price is 200 deli sandwiches per day. You, however, don't have this information and have just opened your deli. You decide to price your sandwiches at $9.00 and are willing and able to sell 285 sandwiches per day at that price. When you do this, you notice you sell 100 sandwiches per day. Draw this situation on a graph and then explain what will happen in this market -- i. e., if there is a shortage or surplus, show this on the graph and then explain what the shortage or surplus will cause to happen in the market. Make sure you talk about inventories in your answer.

Consumer surplus is a measure of the difference between: a)  The price which a consumer has to pay and the cost of producing the good (in a diagram, the area between the market price, and the supply curve). b)  The consumer’s willingness to pay, and the cost of production (the area between the demand curve and the supply curve). c)  The value which a consumer places on a unit of the good, and the market price (the area between the demand curve and the market price line). d)  The marginal revenue from sales and the marginal cost of sales (the area between the marginal revenue and the marginal cost curves).