The following table shows the willingness to pay for a good for the only four consumers in a market. Consumer Willingness to Pay $25 $40 $15 D $30 a. If the price of the good is $30, how many units will be demanded? b. If the price of the good is $30, how much is the total consumer slurplus? A B IC

The following table shows the willingness to pay for a good for the only four consumers in a market. Consumer Willingness to Pay $25 $40 $15 D $30 a. If the price of the good is $30, how many units will be demanded? b. If the price of the good is $30, how much is the total consumer slurplus? A B IC

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 1DQ

See similar textbooks

Related questions

Q: Suppose that Zoomba is one of over a dozen competitive firms in the Oviedo area that offers moving…

A: The per unit revenue by selling goods is AR(average revenue). The change in revenue due to a change…

Q: Use the function below (whose parameters qualify it as a STC function) to answer the questions. See…

A: Fixed costs are that cost that is fixed and doesn't change with the change in output. Variable cost…

Q: ols Consider the market for electric cars. Suppose that a electric car manufacturing facility dumps…

A: Private cost is the cost that is privately incurred for the production of the output. Private cost…

Q: Suppose the airline industry consisted of only two firms: American and Texas Air Corp. Let the two…

A: Market Demand function : P = 100- Q Let the firm's output be denoted as : q1 & q2 So , P = 100…

Q: The Hull Petroleum Company and Inverted V are retail gasoline franchises that compete in a local…

A: In a Bertrand oligopoly, firms determine prices (not quantity) independently to maximize profits.…

Q: Consider a firm in each of the following three situations, and explain whether the firm will produce…

A: Marginal cost is an increase in total cost due to production of additional units. It tells how much…

Q: 1. What is one advantage and one disadvantage of increasing the minimum wage? 2. What is the impact…

A: This can be described as a form of market in which no single producer or consumer has the power to…

Q: Scooter's Scooters is a large American manufacturer of electric scooters operating out of Mesa.…

A: Economies of scale refer to the cost advantages that businesses can realize when production is…

Q: Find the confidence interval for estimating the population proportion for parts (a) through (c). a.…

A: The standard error can be calculated using the following formula:SE = sqrt (pq/n)where:p = Sample…

Q: Identify a newspaper article that illustrates a market failure in Trinidad and Tobago. Market…

A: Article:Trinidad and Tobago's Water Pollution Crisis: A Market FailureTrinidad and Tobago, a…

Q: DISCUSS THE COST OF ENERGY IN THE UNITED STATES

A: Energy cost in the United States is a multifaceted subject influenced by diverse factors, including…

Q: Shown is the capital account for 2018 for the fictional country of Balancia. Given these entries,…

A: BOP is a record of a nation's transactions with the rest of the world, Theoretically, BOP account is…

Q: Match the characteristics below with the appropriate models of firm behavior. Many firms,…

A: Market structure refers to the study of different types of markets. There are four types of market,…

Q: Price $22 16 10 6 N Tax 300 600 a. $600 O b. $900 OC. $2200 d. $1800 Quantity Refer to Figure 8-6.…

A: Consumer surplus is the difference between the price that a consumer is paying and the price he is…

Q: 24 22 20 18 16 14 12 10 8 6 4 2 个price 2 46 8 10 12 14 16 18 20 A price floor set at S D quantity…

A: Total surplus is the sum of consumer surplus and producer surplus in a market. It shows the overall…

Q: Refer to the table below, which shows price data for a hypothetical economy, between which two years…

A: The Consumer Price Index or CPI in economics indicates or measures the change in price level through…

Q: Interest Rate 8765432 11 0 Sm Dm 100 200 300 400 500 600 Quantity of Money ($ billions) If the…

A: Bond is a debt instrument issued by government or corporation to raise money in financial…

Q: Which of the following correctly represents the formula for relative PPP? Note: the formula has been…

A: The relative purchasing power parity (PPP) between two countries is a relationship that shows the…

Q: Consider the market for electric cars. Suppose that a electric car manufacturing facility dumps…

A: Negative externalities- the cost that is borne by a third party as a result of the production or…

Q: Table 24.1 Monopoly Costs and Revenue Quantity 1 2 3 4 5 Price $ 600 $500 $350 $300 $250 Total Cost…

A: A monopolist sells a unique product which itself gives an advantage to the consumer. To maintain the…

Q: The marginal propensity to consume in this economy is [ Suppose the central bank's policy is to…

A: Gross Domestic product is the total value of all goods and services produced within a country's…

Q: Analyse briefly the impact of the overall change in the money multiplier and the money supply as a…

A: Money supply:The money supply is the total money that is circulated in an economy. The central bank…

Q: 3/ Consider the following information on several houses that were recently sold in an open market.…

A: Equilibrium is the state where market forces of demand and supply equates to have an equilibrium…

Q: Multiple answers: Multiple answers are accepted for this question Select one or more answers and…

A: The supply of these raw materials depends on various natural aspects, especially the materials that…

Q: An investor has preferences represented by a utility function u(c) and initial wealth w > 0.…

A: Utility function : U (c ) = c0.5Probability of G = pi Probability of B = (1-pi ) G = 10 , B =…

Q: You estimate that your cattle farm will generate $1 million of profits on sales of $5.4 million…

A: Degree of operating leverage measures the sensitivity of a company's operating income to changes in…

Q: Briefly explain Direct Marketing and Direct Selling distribution methods. Discuss about these…

A: Direct Marketing and Direct Selling are both distribution methods that involve reaching out to…

Q: Comparing a perfectly versus monopolistic competitive market, in the long run what happens to prices…

A: a) Perfectly Competitive Market:Prices: In the long run, prices tend to be driven down to the level…

Q: 3. Suppose the marginal damage and marginal benefit curves in a polluted neighborhood are MDP /3 and…

A: Marginal benefit refers to the additional satisfaction or utility gained from consuming one more…

Q: The table below shows the cost information for a firm in a perfectly competitive industry. If all…

A: Perfect competition is a kind of theoretical market concept, where there are no monopolies or upper…

Q: Contractionary monetary policy will decrease the money supply and interest rates, causing real GDP…

A: Contractionary monetary policy is a macroeconomic strategy employed by central banks to reduce the…

Q: Use the following information to answer questions 1 and 2…

A: Government spending towards many public benefits. It's the full amount a government spends on…

Q: 1. Suppose the production function of a firm is given as: Q = 5L+10L²-2L³ a. Find the number of…

A: Since you have posted two independent questions with subparts, according to the guidelines, only the…

Q: The following graph shows the marginal cost (MC) and average total cost (ATC) and the initial demand…

A: Perfect competition is a type of market where there are very large number of firms,which have no…

Q: Suppose for Home: Ms=2488, Md/P=5723-62770*R, P=3 Suppose for Foreign:Ms=1736, Md/P=7147-65320*R,…

A: Absolute Purchasing Power Parity (PPP) suggests that the exchange rate between two currencies will…

Q: Use the table below to answer the following questions. Real Consumptio GDP n $300 310 320 330 340…

A: DISCLAIMER “Since you have asked multiple questions, we will solve the first three questions for…

Q: Can you answer part d, e and f of the original question?

A: The rate of inflation is a measure that quantifies the percentage change in the general price level…

Q: marginal costs of $45. How much Grinch's output in equilibrium? Oa) 1,350 Ob) 2,025 c) 337.50 O d)…

A: Under cournot duopoly each there are 2 firms, each of the firm had the objective of finding the…

Q: Year Money Supply (M1) (BBD million) Inflation Rate (%) 2014 1,945.8 1.77 2015 2,001.6 -1.11 2016…

A: The objective of the question is to analyze the given data on money supply and inflation rate in…

Q: Suppose the economy of an island behaves as the Solow model (Y=AK1/2L1/2), version 1.0 (constant…

A: The Solow Model in economics is a growth model which explains the change in the level of output of…

Q: Which of the following would cause banks to increase the amount of excess reserves that they hold?…

A: The money that a bank retains over and above the minimum amount mandated by regulatory bodies is…

Q: If the Bank of Canada were to conduct an open market sale, it would Select one: a. decrease the…

A: Open market operation is a monetary policy tool. Open market operation is the sale and purchase of…

Q: In the figure above the firm is suffering negative economic profit. the firm is operating in a…

A: A monopoly is a market structure in which a single seller controls the entire supply of a particular…

Q: What is the tariff rate (in cents per kg) charged by U.S. on live buffalo originating in each of the…

A: A tariff is a tax imposed on goods and services that are imported into a country from another…

Q: Suppose the tattoo shop market in Richmond is monopolistically competitive. Consider the market from…

A: Monopolistic competition is a form of imperfect competition. There are large number of firms. There…

Q: Choose the one alternative that best completes the statement or answers the question. The diagram…

A: The business cycle shows the fluctuations in an economy. Economic activity such as expansion and…

Q: Example: Dominant Firm Model with Capacity The cost function of the fringe firms is TC(g) = 4g,…

A: The objective of the question is to determine the fringe supply and the profit maximizing price for…

Q: A. Suppose a collapse in consumer spending lowers GDP below potential and causes deflation in the…

A: The gross domestic product is the market value of all finished goods and services produced inside a…

Q: 12 Question See page 444 Demand for alcohol has been present for much of human history, but supply…

A: Step: 1(Part 1)In the long run, the price of wine will be $150 per bottle. This is because the price…

Q: Discuss in detail the law of diminishing returns and how it explains the shape of the short-run…

A: The law of diminishing marginal utility (MU) describes, how there can be a maximum utility for the…

Question

The following table shows the willingness to pay for a good for the only four consumers
in a market.
Willingness to Pay
$25
$40
$15
D
$30
a. If the price of the good is $30, how many units will be demanded?
b. If the price of the good is $30, how much is the total consumer slurplus?
Consumer
A
B
C

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: State the information given

VIEW

Step 2: a. Determine the number of units demanded

VIEW

Step 3: b. Determine the total consumer surplus.

VIEW

Solution

VIEW

Step by step

Solved in 4 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Identify the flaw in this analysis: “If more Trinidadians go on a vegan diet, thedemand for beef will fall. The decrease in the demand for beef will cause theprice of beef to fall. The lower price, however, will then increase the demand.In the new equilibrium, Trinidadians might end up consuming more beef thanthey did initially
Does a change in consumer taste lead to a movement along the demand curve or to a shift in demand curve? Does a change in price lead to a movement along the demand curve or to a shioft in the demand curve? Expalin your answer.
There are three consumers in the market for potato chips; Don, Peggy, and Pete. The following table displays each consumers' demand schedule for potato chips. For each blank space, type in the correct answer (write your answer as a number). Price per bag ($) .25 .50 .75 1.00 1.25 1.50 Don's demand 7 6 5 4 3 2 Peggy's demand 10 8 6 4 2 0 Pete's demand 6 5 4 3 2 1 a) At a price of $0.75 per bag, the quantity demanded by the market is [Select] units of potato chips. b) Suppose that the price of potato chips is initially $0.75 and increases to $1.25. There is [Select] by the market that is equal to [Select] units of potato chips. c) Suppose that Pete decides to go on a diet and will no longer purchases potato chips at any price. In addition, after Pete has left the market, suppose that we observe that the quantity of potato chips demanded by the market is equal to 14 units. We can therefore infer that the market price is [Select]
What does supply and demand determine in the home pricing market?
Suppose there are three buyers of candy in a market: Tex, Dex, and Rex. The market demand and the individual demands of Tex, Dex, and Rex are shown in the following table. a. Fill in the missing values (gray-shaded cells) in the table. Individual Quantities Demanded Price per Total Quantity Demanded Теx Dex Rex Candy $ 1 1 3 7 2 12 6 11 19 5 7 15 26 4 9. 19 b. Which buyer demands the least at a price of $5? |(Click to select) ♥ The most at a price of $7? (Click to select) V c. Which buyer's quantity demanded increases the most when the price decreases from $7 to $6? |(Click to select) ♥ d. Which direction would the market demand curve shift if Tex withdrew from the market? (Click to select) ♥ What if Dex doubled his purchases at each possible price? |(Click to select) V e. Suppose that at a price of $6, the total quantity demanded increases from 19 to 29. Is this a "change in the quantity demanded" or a “change in demand"? (Click to select)
If the price of light bulbs rises, what happens to light bulb's demand curve? Light bulb's demand curve does not change. Light bulb's demand curve shifts to the right. Light bulb's demand curve shifts right because light bulbs are an inferior good. O Light bulb's supply curve shifts to the right.
What are 2 products with different price elasticities of demand, and how do you analyze how firms can use information about price elasticity of demand to their advantage?
The following data reveal how much each consumer is willing to pay for an Alaskan Cruise. Ed- $2000 Hugo-$1800 Isabel-$1500 Carol -$1500 Gigi-$1300 Bob-$1100 Amy-$900 Eduardo-$400 a. Draw the Market Demand Curve For these 8 consumers (Want to check this is correct)
10. What happens to the demand curve for an inferior good if a consumer's income increases? Show me using a diagram, please.
Sohail’s income declines and as a result, he buys more pumpkin juice. Is pumpkinjuice an inferior or a normal good? What happens to Sohail’s demand curve forpumpkin juice?
Give typing answer with explanation and conclusion Suppose the cost of petrol is Rs. 100 per litre. There are two consumers who wish to purchase petrol for their cars: A and B. Consumer A goes to the petrol pump and asks for 10 litres of petrol. Consumer B goes to the petrol pump and asks for petrol worth Rs. 1000. (i) Find the equilibrium quantity demanded by each consumer. (ii) Draw the demand curves for each consumer. Are the two consumers identical? What is the price elasticity of demand for each consumer?
If price will change, holding other factors constant, the following will happen in the market for a consumerSingle choice. a. There will be a change in quantity demanded. b. There will be a change in quantity supplied. c. There will be a change in demand. d. There will be a change in supply.