Microeconomics
Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 4, Problem 1RQ
To determine

The impact of increasing supply on consumer surplus.

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The graph shows the market for tutoring at a university. Price (per hour of tutoring) $25 20 15 10 7.50 LO 5 2.50 S D 100 200 300 400 500 600 700 800 900 Quantity (hours of tutoring per week) If there is a price floor of $15, consumer surplus is, in numerals, $.
17. You're given the following supply and demand table: (LO5-5) P $0 2 4 6 8 10 12 14 Demand Q 1,000 800 700 500 300 200 100 0 P $0 2 4 6 8 10 12 14 Supply Q 0 200 400 500 700 900 1,100 1,200 a. What is equilibrium price and quantity in a market system with no interferences? b. If this were a third-party-payer market where the con- sumer pays $4, what is the quantity demanded? What is the price charged by the seller? c. What is total spending in the two situations described in a and b?
Suppose a demand curve has a vertical intercept of (0,80). Suppose a supply curve has a vertical intercept of (0,0). The equilibrium price is $30 and the dollars. equilibrium quantity is 40. The total surplus is O 800 O 1600 O 2400 O 3200
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