The economic efficiency after drought.

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Answer 1

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Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 4, Problem 4.2.3PA

To determine

The economic efficiency after drought.

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The graph shows the market for hamburgers, and the consumer surplus and producer surplus. What is total surplus? Total surplus is $ If the quantity demanded of hamburgers decreases by 80 an hour at each price, the demand curve shifts leftward from D, to D₁. Draw a point at the new equilibrium price and equilibrium quantity. Draw a shape to show the new producer surplus and labelit PS. Draw a shape to show the new consumer surplus and label it CS. By how much does total surplus change when demand decreases? Total surplus by $. 0 9.00 8.00- 7.00- 6.00- 5.00- 4.00- 3.00 2.00 1.00- 0.00 Price (dollars per hamburger) 0 20 9.00 8.00 7.00- 6.00- 5.00- 4.00- 3.00 2.00 S 1.00 0.00- Price (dollars per hamburger) 0 D₁ Do 40 60 80 100 120 140 160 180 Quantity (hamburgers per hour) S D 20 40 60 80 100 120 140 160 180 Quantity (hamburgers per hour) Q Q Q ✔ >>> Draw only the objects specified in the question.

Suppose the market price of sunflower changed to 5 (P = 5) from the market equilibrium (Question 10). 12. Use the percentage change in quantity and price to calculate the price elasticity of demand from this change 13. What is new consumer surplus and producer surplus? Who gets benefit from this price change? Briefly explain.

Last year the average price for an airline ticket was $450, but the average price dropped to $375 this year due to a decrease in the demand for airplane travel. The accompanying table contains information on the supply of air travel. a. Using the information in the table, move the points on the graph to sketch a supply curve. b. Shade the area on the graph that represents producer surplus from the previous year when the price was $450. Also shade the area that represents producer surplus this year after the price has dropped to $375. Average ticket price Quantity supplied (thousands of seats) $150 200 $300 500 $450 800 $600 1,100 $750 1,400 c. Producer surplus this year is ____ than producer surplus last year. (refer to graph)

Answer 2

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Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 4, Problem 4.2.3PA

To determine

The economic efficiency after drought.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 4, Problem 4.2.3PA

To determine

The economic efficiency after drought.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 4, Problem 4.2.3PA

To determine