C. With the price floor at $1.05 per pound of butter, show the areas that represent deadweight loss, consumer surplus, and producer surplus. Calculate each and show your work. Is total surplus higher or lower than in the free market? Price of butter (per pound) $1.20 1.15 1.10 1.05 1.00 - Price floor 0.95 0.90 0.85 1.60 1.65 1.70 Quantity of butter (billions of pounds) %24
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- The figure to the right shows the U.S. demand and supply for leather footwear. Under autarky, the consumer surplus is area OA. S + V OB. R. OC. S. OD. R+S+V. Price $54 30 24 0 R S V W Q TU X Y Q₁ Q₂ US Supply World price US Demand Quantity of leather footwearThe price of apples that shane buys monthly drops from $8 to $4, the equilibrium quantity is 4. What would be the increase amount of consumer surplus?Market for Game Consoles 600 Tools 550 500 CS PS 450 400 350 ESeq 300 250 200 150 100 50 D 10 20 30 40 50 60 70 80 90 100110 Quantity a. What is the quantity demanded at $150 per game console? Quantity demanded: 20 game consoles b. What is the quantity supplied at $150 per game console? Quantity supplied:| 80 game consoles c. What is the consumer surplus generated at a price of $150 per game console? Instructions: Use the tool provided "CS" to illustrate this area on the graph. Consumer surplus: $ 30000 d. What is the producer surplus generated at a price of $150 per game console? Instructions: Use the tool provided “PS" to illustrate this area on the graph. Producer surplus: $ 3750 e. What is total economic surplus at a price of $150 per game console? Economic surplus: $ 33750 f. What is the economic surplus generated if the market were in equilibrium? Instructions: Use the tool provided “ESeg" to illustrate this area on the graph. Economic surplus in equilibrium: $ 56250 Price…
- For each scenario, decide whether it results in a producer or consumer surplus. Then calculate the resulting surplus. Alice is willing to spend $30$30 on a pair of jeans and has a coupon for $10$10 off. She purchases a pair of jeans that costs $35$35 pre-discount. Alice receives a Alice's surplus: $ Jeff finds steak in the supermarket priced at$16$16 but that he would have been willing to pay $20$20 for. The butcher notices the meat is near the expiration date and gives him an extra 7575% off. Jeff receives a producer surplus. consumer surplus. Jeff's surplus: $ Nicole has a hockey puck from the 2018 Winter Olympic Games and puts it up for sale on eBay. She will only sell the puck if the winning bid is greater than or equal to $500$500. After the bidding closes, the last bid stands at $501$501. Nicole receives a Nicole's surplus: $QUESTION 32 Price 100 75 50 18.5 19.25 20 More ofbarels per day Suppose the graph above accurately depicts the daily US demand curve for oil and that an increase in supply causes the price of oil to fall from $100 to $50 a barrel, what is the change in the daily consumer surplus? a. $925 million b. $37.5 million c. $1.85 billion d. $962.5 million QUESTION 33The graph on the mainction laturing at a university. Price (per hour of tutoring) $25 20 15 10 7.50 5 2.50 S I I 100 200 300 400 500 600 700 800 900 Quantity (hours of tutoring per week) If there is a price floor of $15, producer surplus is, in numerals, $_
- Help Maximum Prce Willing to Pay $13 Person Minimum Acceptable Price Person Bob Carlos Barb 12 $3 Courtney 4 Bill 11 Chuck Bart 10 Cindy Brent 6. Craig Betty 8. Chad 8. Instructions: Enter your answers as a whole number. a. What is the total surplus if Bob buys a unit from Carlos? b. What is the total surplus if Barb buys a unit from Courtney? $に d. If you match up pairs of buyers and sellers so as to maximize the total surplus of all transactions, what is the largest total surplus that can be achieved? c. What is the total surplus if Bob buys a unit from Chad? %24 Next > 9 of 10 Prey %24What is Consumer Surplus at a price of $5? Price Quantity Demanded Quantity Supplied 12 1 6 10 2 5 8 3 4 6 4 3 4 5 2 2 6 1 Multiple Choice $4 $20 $16Which area represents the producer surplus?
- KE Consider the market for some product X that is represented in the accompanying demand-and-supply diagram a. Calculate the total economic surplus in this market at the free-market equilibrium price and quantity The total economic surplus is $ per day (Round your response to the nearest cent as needed) 57.00 $5.00 45.00 30 00 3300 27.00 21.00 15.00 900 300- 10 25 15 20 Quantity (units per day) 30Consider the market for plywood in a costal Florida town, which was hit by a hurricane. The residents need to rebuild their houses and are buying plywood in large quantities. To keep the price of plywood from going up too high, the Governor of Florida has decided to impose price controls in the wake of the hurricane. What is the most likely outcome?a. People will be able to obtain the plywood that they need. b. Plywood suppliers from out of state will increase deliveries to Florida to take advantage of the strong demand. c. There will be persistent excess demand for plywood. d. Quantity supplied will increase to meet new demand.Create an o riginal graph in equilibrium like the one in the last problem. Label everything, including the letters that would correspond to CS, PS, etc. Gooo A... Price 30-00+ 20.00 10.00- 0.00- 5 S 0.00 20.00 30.00 Quantity ix. original consumer Surplus? k. original producer Surplus? Xi. Total Market Surplus? équilibrium 10,00 In equilibrium what are the letters and the total dollar amounts that correspond to the area for the... xii. New Consumer Surplus? xiii. New Producer Surplus? 40.00 Xiv. Area that was transferred? XV. Dead weight Loss? Xvi. Remaining Surplus? 50.00 Assume an effective quota has been placed on the market changing the quantity by 2,000 units. Show what happens when an effective price floor is placed on this market. what are the letters and the total dollar amounts that now correspond to the...