EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Question
Chapter 5, Problem 1SP
(a)
To determine
Determine the
(b)
To determine
Determine the consumer surplus after the fall in price.
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Students have asked these similar questions
Larry purchases a book for $10, and his consumer surplus is $3. How much is Larry willing to pay for the book?
Neha buys an iPhone for $240 and gets a consumer surplus of $160.
Her willingness to pay for an iPhone is
.
If she had bought the iPhone on sale for $180, her consumer surplus would have been
.
If the price of the iPhone had been $500, her consumer surplus would have been
Suppose a consumer is willing to buy a book for $50, but the actual price of the book in the market is $30.
What is the consumer surplus in this case?
If the price of the book increases to $40, what would be the new consumer surplus?
Chapter 5 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
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- You’d be willing to pay $200 for a daylong admission ticket to a theme park. The cost of the ticket is $120. Your consumer surplus is:arrow_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_forwardThe formula consumer surplus uses a consumers "willingness to pay" as part of the equation. Economists uses "willingness to pay" as a stand in for the numerical value of the benefit a consumer receives from purchasing something. If a consumer's "willingness to pay" for a sandwich is $10, what does that mean? Why do economists say that the benefit of that sandwich (to that consumer) is $10?arrow_forward
- Consumer 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_forwardThe mayor of the city decides to impose a $2 tax on each bottle of apple juice, then the total surplus is?arrow_forwardThink about all the goods and services that you consume. Which product gives you the highest consumer surplus? Discuss in detail using the equation of consumer surplusarrow_forward
- QUESTION 13 If your willingness to pay for a coffee is 35 dirhams, and the price is 20 dirhams. What is your consumer surplus after you buy the coffee?arrow_forwardThe graph shows the demand curve for wallets and the market price of a wallet. Price (dollars per wallet) 18.00- What is the consumer surplus on wallets? 16.00- What is the total expenditure on wallets? 14.00- What is the total benefit of wallets? Market 12.00- price .... 10.00- Draw a point that shows the quantity of wallets bought and the price paid. 8.00- Draw a shape that represents the consumer surplus. Label it CS. 6.00- 4.00- Draw a shape that represents total expenditure. Label it TE. 2.00- m 0.00- 30 Quantity (wallets per day) 15 45 60 75 90 105 The consumer surplus is $- As Total expenditure on wallets is >>> Draw only the objects specified in the question. SS Total benefit of wallets is $ O Time Remaining: 00:54:18 Next ced rse (ECON202 s2022 online) is based on Bade/Parkin: Foundations of Microeconomics, 9earrow_forwardThere are six potential consumers of computer games, each willing to buy only one game. The willingness to pay (WTP) of each is shown in the table. Consumer 1 2 3 4 5 6 f WTP $40 3.5 30 25 20 15 a. Suppose the market price is $29. What is the total consumer surplus? b. The market price decreases to $19. What is the total consumer surplus now? 59 Incorrect Incorrect Question Source: Krugman/Wells Se-Microeconomics | Publaher Worarrow_forward
- 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 pricearrow_forwardThe following table shows Carl's willingness to pay for clothing. Quantity of Clothing Carl would consume Consumer surplus = $ 2 units. 3 4 5 6 Willingness to Pay $35 $60 $80 $97 $112 Suppose the price of one item of clothing is $17. How much would Carl consume, and what is his consumer surplus? $126arrow_forwardI don't understand the meaning of this sentence. This is the concept that experts say when answering questions. Could you explain that? Why is consumer surplus equal to the utility obtained in consumption? Utility refers to the total amount of satisfaction that derived from the consumption of goods and services. The person's consumer surplus in this case is equal to the utility he derived from the consumption.arrow_forward
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