Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 5, Problem 6QP
To determine
The changes in the supply curve.
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The following graph plots a supply curve (orange line) for a group of recent graduates looking to sell used smart devices. Each seller has only a single
used smart device available for sale. Think of each rectangular area beneath the supply curve as the "cost," or minimum price that each seller is
willing to accept. Assume that anyone who has a cost that equals the market price is willing to sell their used smart device.
PRICE (Dollars per used smart device)
180
150
120
90
60
30
0
0
Andrew
U
Statement
1
Y
X
Beth
ロロ
04
Darnell
张 ☐
Eleanor
Jacques
ロロ
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3
4
QUANTITY (Used smart devices)
5
Kyoko
+
6
Region X (the purple shaded area) represents total producer surplus when the market price is equal to $
area) represents
when the market price
In the following table, indicate which statements are true or false based on the information provided on the previous graph.
while Region Y (the grey shaded
Producer surplus is larger when the price is $105 than when it is $75.
Assuming each seller…
The following graph plots a supply curve (orange line) for a group of recent graduates looking to sell used smart devices. Each seller has only a single
used smart device available for sale. Think of each rectangular area beneath the supply curve as the "cost," or minimum price that each seller is
willing to accept. Assume that anyone who has a cost that equals the market price is willing to sell their used smart device.
PRICE (Dollars per used smart device)
360
300
240
180
120
60
0
M
0
Kevin
1
Maria
Rajiv
Simone
☐
0
Yakov
2
3
4
QUANTITY (Used smart devices)
O
O
5
Ana
1
6
?
Region X (the purple shaded area) represents total producer surplus when the market price is equal to $
area) represents
when the market price
I
while Region Y (the grey shaded
Draw the demand curve in the market for medical care and upload your picture of your diagram, the horizontal axis should represent the number of medical procedures.)
Show the quantity of procedures demanded if each procedure has a price of $100.
On your diagram, show the quantity of procedures demanded if consumers pay only $20 per procedure. If the cost of each procedure to society is truly $100, and if individuals have health insurance as described above, will the number of procedures performed maximize total surplus? Explain.
Consider how health insurance affects the quantity of healthcare services performed. Suppose that the typical medical procedure has a cost of $100, yet a person with health insurance pays only $20 out of pocket. Her insurance company pays the remaining $80. (The insurance company recoups the $80 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undertake.)
Chapter 5 Solutions
Microeconomics
Ch. 5.1 - Prob. 1STCh. 5.1 - Prob. 2STCh. 5.2 - Prob. 1STCh. 5.2 - Prob. 2STCh. 5.3 - Suppose college students are given two options....Ch. 5.3 - Prob. 2STCh. 5.4 - Prob. 1STCh. 5.4 - Prob. 2STCh. 5.5 - Prob. 1STCh. 5.5 - Prob. 2ST
Ch. 5.6 - Give an example to illustrate that someone may pay...Ch. 5.6 - Prob. 2STCh. 5.7 - Prob. 1STCh. 5.7 - Prob. 2STCh. 5.8 - Prob. 1STCh. 5.8 - Prob. 2STCh. 5.9 - Prob. 1STCh. 5.9 - Prob. 2STCh. 5.10 - Prob. 1STCh. 5.10 - Prob. 2STCh. 5.11 - Prob. 1STCh. 5.11 - Prob. 2STCh. 5.12 - Prob. 1STCh. 5.12 - Prob. 2STCh. 5 - Prob. 1QPCh. 5 - Prob. 2QPCh. 5 - Prob. 3QPCh. 5 - Prob. 4QPCh. 5 - Prob. 5QPCh. 5 - Prob. 6QPCh. 5 - Prob. 7QPCh. 5 - Prob. 8QPCh. 5 - Prob. 9QPCh. 5 - Prob. 10QPCh. 5 - Prob. 11QPCh. 5 - Prob. 12QPCh. 5 - Prob. 13QPCh. 5 - Prob. 14QPCh. 5 - Prob. 15QPCh. 5 - Prob. 16QPCh. 5 - Prob. 1WNGCh. 5 - Prob. 2WNGCh. 5 - Prob. 3WNGCh. 5 - Prob. 4WNGCh. 5 - Prob. 5WNGCh. 5 - Prob. 6WNG
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