Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 4.1.14PA
To determine
The
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Review the graph at right for a competitive market
How much is the consumer surplus?
Consumer surplus is $x (round your answer to two decimal places).
How much is the producer surplus?
Producer surplus is $x (round your answer to two decimal places)
How much is the total surplus in this market?
Total surplus is $x (round your answer to two decimal places).
100-
90-
80-
70-4
60-
50-145
40-
30-
20-
10-
Price
0
45
50 60 70 80
Quantity
10 20 30 40
D
MC
90 100
Which of the following is not a true statement about producer surplus?
Select the correct answer below:
Producer surplus is the benefit producers receive for selling goods in a market.
On a graph, producer surplus is the area between the market price and the segment of the supply curve below the
equilibrium.
Producer surplus is the same as consumer surplus.
Producer surplus is the difference between the amount that suppliers in the market are willing to supply goods for
and the amount they actually receive for those goods.
Use the graph below to answer the following questions:
a) what is the level of producer surplus if the market clearing price is $6?
b) calculate the change in producer surplus if price increases from $6 to $8.
c) what is the elasticity of supply in the $6-$8 price range?
Chapter 4 Solutions
Microeconomics (7th Edition)
Ch. 4.A - Prob. 1RQCh. 4.A - Prob. 2RQCh. 4.A - Prob. 3RQCh. 4.A - Why would economists use the term deadweight loss...Ch. 4.A - Prob. 5PACh. 4.A - Prob. 6PACh. 4.A - Prob. 7PACh. 4.A - Prob. 8PACh. 4.A - Prob. 9PACh. 4 - Prob. 1TC
Ch. 4 - Prob. 2TCCh. 4 - Prob. 4.1.1RQCh. 4 - Prob. 4.1.2RQCh. 4 - Prob. 4.1.3RQCh. 4 - Prob. 4.1.4RQCh. 4 - Prob. 4.1.5PACh. 4 - Prob. 4.1.6PACh. 4 - Prob. 4.1.7PACh. 4 - Prob. 4.1.8PACh. 4 - Prob. 4.1.9PACh. 4 - Prob. 4.1.10PACh. 4 - Prob. 4.1.11PACh. 4 - Prob. 4.1.12PACh. 4 - Prob. 4.1.13PACh. 4 - Prob. 4.1.14PACh. 4 - Prob. 4.2.1RQCh. 4 - Prob. 4.2.2RQCh. 4 - Prob. 4.2.3PACh. 4 - Prob. 4.2.4PACh. 4 - Prob. 4.2.5PACh. 4 - Prob. 4.2.6PACh. 4 - Prob. 4.2.7PACh. 4 - Prob. 4.2.8PACh. 4 - Prob. 4.2.9PACh. 4 - Prob. 4.2.10PACh. 4 - Prob. 4.3.1RQCh. 4 - Prob. 4.3.2RQCh. 4 - Prob. 4.3.3RQCh. 4 - Prob. 4.3.4RQCh. 4 - Prob. 4.3.5PACh. 4 - Prob. 4.3.6PACh. 4 - Prob. 4.3.7PACh. 4 - Prob. 4.3.8PACh. 4 - Prob. 4.3.9PACh. 4 - Prob. 4.3.10PACh. 4 - Prob. 4.3.11PACh. 4 - Prob. 4.3.12PACh. 4 - Prob. 4.3.13PACh. 4 - Prob. 4.3.14PACh. 4 - Prob. 4.3.15PACh. 4 - Prob. 4.3.16PACh. 4 - Prob. 4.3.17PACh. 4 - Prob. 4.3.18PACh. 4 - Prob. 4.3.19PACh. 4 - Prob. 4.4.1RQCh. 4 - Prob. 4.4.2RQCh. 4 - Prob. 4.4.3RQCh. 4 - As explained in the chapter, economic efficiency...Ch. 4 - Prob. 4.4.5PACh. 4 - Prob. 4.4.6PACh. 4 - Prob. 4.4.7PACh. 4 - Prob. 4.4.8PACh. 4 - Prob. 4.4.9PACh. 4 - Prob. 4.4.10PACh. 4 - Prob. 4.2CTE
Knowledge Booster
Similar questions
- Use the following graph to answer the question: how much is producer surplus? What is the total value to consumers of consuming the first ten units of this good? Use the following graph to answer the question: how much is producer surplus? What is the total value to consumers of consuming the first ten units of this good?arrow_forwardThe graph shows the supply curve of candles and the market price of a candle. What is the quantity of candles sold? Calculate the producer surplus, the total revenue from the candles, and the cost of producing them. *** Draw a point to show the quantity of candles sold and the price. Draw a shape that represents the producer surplus. The producer surplus is $ The total revenue is $. The total cost of producing 20 candles is $ 50.00 40.00- 30.00 20.00 10.00- 0.00+ 0 Price (dollars per candle) S Market price 40 60 20 Quantity (candles per day) >>> Draw only the objects specified in the question. 80 Qarrow_forwardCan you help me with this please? If there is a surplus of goods in the market would that still lead to a producer surplus? Producer surplus being defined as the amount a seller is paid for a good minus the sellers cost of providing it. arrow_forward
- Based on this graph, Calculate producer surplus from 500 pairs of shoes.arrow_forwardYou are given the following market data for Venus automobiles in Saturnia. Demand: P = 35,000 - 0.50 Supply: P = 8,000+ 0.25Q where P = Price and Q = Quantity. a. b. C. Calculate the equilibrium price and quantity. Calculate the consumer surplus in this market. Calculate the producer surplus in this market.arrow_forwardCalculate the consumer surplus and producer surplus using the graph below. If the consumer surplus was $0, would consumers still benefit by participating in this market? Price 50 40 30 20 10 100 200 300 400 Supply Demand 500 Quantityarrow_forward
- The following graph plots the supply and demand curves in the market for motor scooters. Use the black point (plus symbol) to indicate the equilibrium price and quantity of motor scooters. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. (?) PRICE (Dollars per scooter) 300 270 240 210 180 150 120 60 30 0 0 Demand Supply 95 190 285 380 475 570 665 780 855 QUANTITY (Millions of scooters) Total surplus in this market is $ 950 million. Equilibrium A Consumer Surplus Producer Surplusarrow_forwardUse the following graph to answer the question: how much is producer surplus? What is the total value to consumers of consuming the first ten units of this good?arrow_forwardAssume the market depicted in the graph is in equilibrium. What is producer surplus? $30 $60 $50 $20arrow_forward
- Suppose a tax of $0.25 is placed on the market depicted below. What is the consumer surplus after the tax is imposed?arrow_forwardRefer to the Figure below. Suppose the market price of a laptop is $600, and 3,000 laptops are sold at this price. What is the producer surplus?arrow_forwardConsumer surplus is a measure of the difference between: a) The price which a consumer has to pay and the cost of producing the good (in a diagram, the area between the market price, and the supply curve). b) The consumer’s willingness to pay, and the cost of production (the area between the demand curve and the supply curve). c) The value which a consumer places on a unit of the good, and the market price (the area between the demand curve and the market price line). d) The marginal revenue from sales and the marginal cost of sales (the area between the marginal revenue and the marginal cost curves).arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning