Answered: What is the producer surplus in the…

Business

Economics

What is the producer surplus in the market equilibrium? Again, the equations are: Qs = 3P - 90 Qd = 400 - 5P

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Suppose there is a downward sloping demand curve that has a y-intercept of 70 and an upward sloping…

A: Consumer surplus is measured as the area below the downward-sloping demand curve or amount a…

Q: Find the consumers' surplus and the producers' surplus at the equlibrium level for the given…

A: Equilibrium is where demand equals supply. Consumer surplus is the area below demand curve and above…

Q: Given the following equations: P = 450 - 50Qd Inverse Demand Qd = 9 - .02P Regular Demand P=50+50Qs…

A: The equilibrium is established where the demand and supply are equal. The consumer surplus is the…

Q: Determine the output level that is market equilibrium.

A: Market equilibrium is a point where the producers and consumers are producing and consuming…

Q: If the deadweight loss in the market represented by the graph is $1,400, what is the actual economic…

A: Economic surplus refers to the sum of consumer surplus and producer surplus.

Q: As the number of suppliers increases in a market, the producer surplus increases. True O False

A: The question is asking whether an increase in the number of suppliers in a market leads to an…

Q: The market supply is MC = 10 + 3Q but the suppliers can only supply 5 units in total! The Market…

A: Total surplus represents the aggregate welfare gained within a market equilibrium, embodying both…

Q: Suppose the market supply curve is p = 6 + 0.6Q. If price increases from 11 to 17, the change in…

A: a) Given Market supply curve = P = 6 + 0.6Q The total revenue that a producer receives from selling…

Q: the per-unit price increases fromp = 18.00 to p = 23.50, what is the firm's change in producer's…

A: Producer surplus is the difference between the amount of goods that you are willing to accept and…

Q: Given a demand curve of P = 119 - 9Qd and supply of P = 22 + 2Qs, please calculate consumer surplus,…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…

Q: Suppose that the demand for Prada scarves is given by Q = 53 - P and the supply of these scarves is…

A: Consumer surplus is the extra benefit enjoyed by the consumer in the market who pay less to the…

Q: Consider a market in equilibrium. Suppose demand in this market increases. How will this affect…

A: Market is in equilibrium at the intersection of demand and supply curves where quantity demanded…

Q: 1.3 If the inverse demand function for radios is - p= a bq, what is the consumer surplus if the…

A: If the equilibrium price is a/2 then we find the quantity at that price so we replace this in the…

Q: Calculate the value of equilibrium price and equilibrium quantity of the commodity Z. When,the…

A: Demand: Demand for a commodity can be defined as the desire and willingness of a consumer to acquire…

Q: Define Consumer and Producer Surplus and illustrate them graphically.

A: Consumer Surplus: The difference between the amount that the consumer is willing to pay and the…

Q: The total surplus in a market can be measured as the area under the supply curve plus the area above…

A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve.The…

Q: Suppose that the demand for Prada scarves is given by Q = 53 - P and the supply of these scarves is…

A: Demand function, Q = 53 - P Supply function Q = 2P - 10

Q: If the supply curve is q = 4 + 2p, what is the producer surplus if the price is p = 12? Producer…

A: Producer surplus is the difference between market price and minimum price producers are willing to…

Q: What is the consumer and producer surplus when the price of penicillin remain the same when both…

A: Consumer surplus refers to the difference between the amount which the consumer is willing to pay…

Q: Please written by computer source Suppose that the demand curve for a product is given by Q = 100…

A: Consumer Surplus: Consumer surplus is the net benefits that the consumer receives by purchasing…

Q: Find the equilibrium price and compute the consumer and producer surplus.

A: For computing the equilibrium price and quantity in the market , there needs to be balance between…

Q: As the number of suppliers increases in a market, the producer surplus increases. True O False

A: The question is asking whether an increase in the number of suppliers in a market leads to an…

Q: In a sunflower market, consumers have demand function for a sunflower given by P = -4Qd + 21 where…

A: Consumer surplus is the area above the price and below the demand curve. Producer surplus is the…

Q: QA Home 13 Qm Consider the diagram above. From what you know, Home is exporting…

A: Home is importing manufacturing goods and exporting agricultural goods.

Q: The demand curve for a product is given by QD = 475 - 25P and the supply curve for a product %3D is…

A: Solution: Equilibrium occurs where the demand equals supply, so QD = QS 475 - 25P = 15P - 45 475 +…

Q: Suppose that last year the equilibrium price and the quantity of good Xwere $10 and 5 million…

A: The producer surplus is the amount that separates what a seller can obtain by selling an item at…

Q: Economics

A: In order to determine the economic surplus resulting from trade in a competitive equilibrium, it is…

Q: Determine the output level creates a maximum total surplus.

A: Total surplus i.e. (consumer surplus + producer surplus) is maximized when there is no deadweight…

Q: The figure presents the demand and supply conditions in the widget market. If the market is in…

A: Equilibrium refers to the situation in market when quantity demanded and quantity supplied are…

Q: Calculate the Producer Surplus for the above diagram assuming the price is P1 with two decimal…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: A small province is planning to levy a hotel room tax of $20 per night on hotel owners to recover…

A: A tax levied on a commodity will increase the price of the commodity causing changes in the demand…

Q: 2 = 3+1.5p P = 12 2 = 3+ 1.5(12) 2 = 21 - will be a deficit of 75 "roducer surplus 21 sq²–2q – 2c =…

A: Equilibrium is achieved at the output level where Qs equals Qd.

Q: not use ai please

A: Demand Function D(q):Definition: The demand function D(q) represents the relationship between the…

Q: The market equilibrium price Is $100 And the market demand curve is given as:- 7Q - 40 = P…

A: The information being given is:- Equilibrium price = $100 Market demand curve is given as:- 7Q - 40…

Q: As the number of suppliers increases in a market, the producer surplus increases. True O False

A: The question is asking whether an increase in the number of suppliers in a market leads to an…

Q: If total surplus rises, there may have been a(n). in demand or a(n), in supply. decrease; increase…

A: Producer surplus is defined because the difference between the number the producer is willing to…

Q: Calculate producer surplus based on a graphor table.

A: The producer surplus is the difference between the actual price received by the producer from the…

Q: uppose the market supply curve is p = 6Q. What is the producer surplus at a price of 15?

A: The producer surplus is the difference between the actual price producer receives and minimum price…

Q: The demand for pizza is qd= 20 -2*p The supply of pizza is qs=-10 +3*p The equilibrium price equals…

A: Equilibrium quantity is stated to be as the situation where actually there is actually no shortage…

Q: Find the consumer's and producer's surplus if for a product D(x) = 16 – 0.005x² and S(x) = 0.004x² .…

A: Given Demand function: D(x)=16-0.005x2 .... (1) Supply equation: S(x)=0.004x2…

Question

What is the producer surplus in the market equilibrium?
Again, the equations are:
Q = 3P-90
Qd = 400 - 5P

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: Define Producer Surplus

VIEW

Step 2: Find the PS

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 4 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

Suppose that the supply and demand equations for a certain product are given by: p=D(q) =70-0.2x p= S(q) = 13+0.004.x² Graph the two functions on the same axes. Label some of the values on each axis.
the demand and supply curves for a product are given as: 2q-15p=-120 q+2p = 35 Find the consumer surplus at the equilibrium Find the producer surplus at the equilibrium. Note: don't use chat gpt.
Suppose that the demand for Prada scarves is given by Q = 53 - P and the supply of these scarves is given by Q = 2P – 10. Calculate producer surplus
Consider a market with the equilibrium quantity = 100 and the equilibrium price = 50. Without further information on the market, can we answer the quantity that maximizes the total surplus? If we can, answer the quantity. If we cannot, answer “Cannot”.
Find the consumer surplus and producer surplus for the demand and supply functions asfollows respectively. pz (x) = -0.2x +8, pi (x) = 0.1x + 2. Please interpret the meaning of both by a sketch.
Consumer surplus is equal to the difference between
If the economy goes into a recession and incomes fall, what happens in markets? Prices of inferior goods go up because the demand for them increases Prices of normal goods go up because the demand for them increases Prices of all goods go down None of the other answers is correct Suppose the demand curve is given by P=10-Q and the supply curve by Q=P If the price in the market is given by $7, then The market is in equilibrium There is a a surplus in the market There is a shortage in the market Increasing the price will result in an increase in the quantity demanded
Calculate the producers' surplus for the supply equation at the indicated unit price p. (Round your answer to the nearest cent.) p = 90 + q; p = 225 $ Note: Hand written not allowed
In a competitive market the supply is given S(p)= 4p, and the demand is D(p)=1/p^2.p = the product price.The government is thinking about adding a tax to the product. How large will the portion of the tax that falls on consumer be? (Tax incidence on consumers)
Qd=120-3P Qs =30 At the equilibrium price and quantity, what is producer surplus?
Graphically, producer surplus is the area from the market price ($120) down to the supply curve and over to the equilibrium quantity of 120.
In a given town, demand for fish and supply of fish is given by P = 3,955 - 6 * Q and P = 1,012 + 24 * Q respectively. Here P and Q denote are fish price and fish quantity (in tons). What percentage of the total surplus goes to producers if the fish market is competitive?