Principles of Macroeconomics (11th Edition)
11th Edition
ISBN: 9780133023671
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 4, Problem 17P
Subpart (a)
To determine
Calculate and illustrate the
Subpart (b)
To determine
To calculate the total consumer surplus, producer surplus and dead weight loss when there is underproduction and show them on the graph.
Subpart (c)
To determine
To calculate the total consumer surplus, producer surplus and dead weight loss when there is overproduction and show them on the graph.
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Answer the following questions based on the graph that represents Kyle's demand for ribs per week at Big Ed's Barbecue.
f.
If the price of ribs rose to $10, what would happen to Big Ed's producer surplus?
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The graph shows the demand curve for haircuts and the market price of a haircut.
If the price of a haircut rises from $15 to $20, what is the change in consumer surplus?
Consumer surplus decreases by $ 50000
C
30-
25-
20-
15-
10-
5-
Price (dollars per haircut)
10
20
30
Quantity (haircuts per day)
Market
price
PRICE [Dolars per laptop)
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150
Demand
135
120
105
90
75
60
45
30
15
Supply
°
1
0
35 70 105 140 175 210 245 280
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315
350
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The market quantity is
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Chapter 4 Solutions
Principles of Macroeconomics (11th Edition)
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