Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 4, Problem 2P
To determine
The producer surplus .
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Students have asked these similar questions
10:17
OT
1. A college student enjoys eating pizza. Her
willingness to pay for each slice is shown in the
following table:
Number of pizza
slices
7
1
2
3
4
5
6
7
Willingness to pay (per
slice)
$6
+
LO
5
4
3
2
1
b. If the price of slices falls to $2, how much
consumer surplus will she enjoy?
O
3
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, $.
20
18
16
14
12
10
8
D
4
2
0 1 2
3
4
5
6 7
8
9.
10 11 12
Quantity
Suppose that supply and demand at a market are represented by curves S and D at
the figure above (notice that the vertical axis grid has increments of $2) and then a
tax of $6 dollars per unit is imposed on buyers.
What is the new equilibrium market price?
$12
$16
$8
$10
Price
LO
Chapter 4 Solutions
Microeconomics
Ch. 4.A - Prob. 1ADQCh. 4.A - Prob. 2ADQCh. 4.A - Prob. 3ADQCh. 4.A - Prob. 1ARQCh. 4.A - Prob. 2ARQCh. 4.A - Prob. 3ARQCh. 4.A - Prob. 1APCh. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQ
Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 1RQCh. 4 - Prob. 2RQCh. 4 - Prob. 3RQCh. 4 - Prob. 4RQCh. 4 - Prob. 5RQCh. 4 - Prob. 6RQCh. 4 - Prob. 7RQCh. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7P
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- Sam is willing to pay $10 for one bracelet and $5 for a second. Isabella is willing to pay $12 for one bracelet and $9 for a second. If the price is currently $8 per bracelet, what is the total consumer surplus when Sam and Isabella make their purchases? O $7 O $8 O $6 O $5arrow_forwardO O 198765432 O 10 Suppose that the market is initially at an equilibrium price of $6 and an equilibrium quantity of 40 units in the graph above. If the government decides to add a $2 per-unit tax on this good, the deadweight loss from the tax will be: 10 80 70 S1 O 60 SO Demand 0 10 20 30 40 50 60 70 80 90100arrow_forwardQuestion 1 A consultant recently provided the firm's marketing manager with this estimate of the demand and supply functions for the firm's product Qd 140-3P Q 20+2P When both equations are plotted, the resulting chart is the following Based on the information, how much social surplus does the society receive at market equilibrium? O 544 O $125 1632 816arrow_forward
- There are two consumers, Andy and Ben, in the market for pumpkins. Their willingness to pay for each pumpkin is shown in the table Pumpkin Market. There are two producers of pumpkins, Cindy and Diane, and their costs are also shown. The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5. At the equilibrium price and quantity, Cindy sells pumpkins, and her producer surplus is______ Andy's Quantity of willingness to Pumpkins pay 1st pumpkin $12 2nd pumpkin 3rd pumpkin 8 4th pumpkin 6 A) four; $2 10 B) three; $81 C) two: $ D) one; $5 Ben's willingness Cindy's to pay cost $11 9 7 5 $3 00 10 Diane's cost $4 11arrow_forwardThe supply curve in a market is given by P = 10 +5.25(Q), while the demand curve is P = 102 - 36(Q). The consumer surplus and producer surplus at the equilibrium will be CSE =________ PSE =__ O A. 136.0; 17.3 OB. 89.5 13.1 O C. 96.9 15.7 O D. 136.0 23.0 O E. 113.1 17.3arrow_forwardA tax is imposed like in the figure below. This will REDUCE the producer surplus by 12 6 5 2 O24 08 18 I OI choose to use one of my three skips on this question. O 10 8 12 S+$2 tax S units.arrow_forward
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