Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 4.A, Problem 8PA
Sub part (a):
To determine
The consumer surplus , producer surplus and the deadweight loss .
Sub part (b):
To determine
The consumer surplus, producer surplus and the deadweight loss.
Sub part (c):
To determine
The producer surplus after price floor.
Sub part (d):
To determine
The consumer surplus after price floor.
Expert Solution & Answer
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Check out a sample textbook solutionStudents have asked these similar questions
The diagram to the right shows a market in which a price floor has been imposed. Identify the
K following (enter al values as integers).
a. The deadweight loss in $.
b. The transfer of consumer surplus to producers is $.
c. Producer surplus with this price floor is
d. Consumer surplus with this price floor is $20000
6.00
5.00
3.00
2.00
30,000
60,000
Quantity
Demand
ddu
PRICE [Dolars per laptop)
The following diagram shows supply and demand in the market for laptops.
150
Demand
135
120
105
90
75
60
45
30
15
Supply
°
1
0
35 70 105 140 175 210 245 280
QUANTITY (Millions of laptops)
315
350
Fill in the following blanks with integer values:
The market price is
The market quantity is
The consumer surplus is 4200
The producer surplus is 4200
The total surplus is 8400
A price ceiling is imposed at $60.
The market price is now
There is now a (surplus/shortage/none)
Is there deadweight loss (yes/no)?
of what amount?
How much if any?
If a price floor is implemented at $65, would it be binding? (yes/no)
The graph represents the weekly demand and supply for the game console market.
Instructions: Enter your answers as a whole number.
a. What is the equilibrium price and quantity?
Price: $
Quantity: game consoles
b. Show the area of consumer surplus on the graph, and then determine how much consumer surplus is generated in the market each week.
Instructions: Use the tool provided “CS” to illustrate this area on the graph.
Consumer surplus: $
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Chapter 4 Solutions
Economics (7th Edition) (What's New in Economics)
Ch. 4.A - Prob. 1RQCh. 4.A - Prob. 2RQCh. 4.A - Prob. 3RQCh. 4.A - Prob. 4RQCh. 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 - What is economic efficiency? Why do economists...Ch. 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 - Prob. 4.4.4RQCh. 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
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