producer surplus in this market will be sSuppose the market price of a motor scooter increases to $110.On the following graph, use the rectangles once again to shade the areas representing producer surplus for each person who is willing to sell a motorscooter at the new market price: blue (dircle symbols) for Shen, green (triangle symbols) for Valerie, purple (diamond symbols) for Antonio, tan (dashsymbols) for Caroline, and orange (square symbols) for Dmitri. (Note: If a person will not sell a motor scooter at the new market price, indicate this byleaving their rectangle in its original position on the palette.)PRICE (Dollars per motor scooter)1601408100BO604020a1ShenValerieAntonioDmitriCaroline2 35QUANTITY (Motor scooters)Market PriceT⠀⠀⠀⠀X1X*XShenValerieAntonioCarolineDeti?Based on the information in the second graph, when the market price of a motor scooter increases to $110, the number of sellers willing to sell a motorscooterand total producer surplustotoF 5. Producer surplus for a group of sellersThe following graph plots a supply curve (orange line) for several sellers in the market for motor scooters in State College, a university town inPennsylvania. Each seller has a single motor scooter for sale. The market price of motor scooters is given by the horizontal black line at $70.Each rectangle on the graph corresponds to a particular seller in this market: blue (cirde symbols) for Shen, green (triangle symbols) for Valerie, purple(diamond symbols) for Antonio, tan (dash symbols) for Caroline, and orange (square symbols) for Dmitri. (Note: The name labels are to the right of thecorresponding segment on the supply curve.)Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at a market price of $70.(Note: If a person will not sell a motor scooter at the market price, indicate this by leaving their rectangle in its original position on the palette.)?PRICE (Dollars per motor scooter)16014012010080604020001Shen2ValerieAntonioDmitriCaroline34QUANTITY (Motor scooters)Market PriceBased on the information on the preceding graph, you can tell thatproducer surplus in this market will begmgShenஇயாதிValeriaAntonioDHECarolineBIEDimenwill sell motor scooters at the given market price, and total

Producer surplus is the difference between the market price and the minimum price a producer is…

On the following graph, use the rectangles once again to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at the new market price: blue (dircle symbols) for Shen, green (triangle symbols) for Valerie, purple (diamond symbols) for Antonio, tan (dash symbols) for Caroline, and orange (square symbols) for Dmitri. (Note: If a person will not sell a motor scooter at the new market price, indicate this by leaving their rectangle in its original position on the palette.) CE (Dollars per motor scooter) 160 140 120 100 80 60 Antonio Dmitri Caroline Market Price 1X1X1X Shen Valerie Antonio

On the following graph, use the rectangles once again to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at the new market price: blue (dircle symbols) for Shen, green (triangle symbols) for Valerie, purple (diamond symbols) for Antonio, tan (dash symbols) for Caroline, and orange (square symbols) for Dmitri. (Note: If a person will not sell a motor scooter at the new market price, indicate this by leaving their rectangle in its original position on the palette.) CE (Dollars per motor scooter) 160 140 120 100 80 60 Antonio Dmitri Caroline Market Price 1X1X1X Shen Valerie Antonio

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 4DQ

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What is consumer surplus? How is it illustrated on a demand and supply diagram?
What is producer surplus? How is it illustrated on a demand and supply diagram?
5. Individual and market supply Suppose that Eric and Ginny are the only suppliers of pieces of cake in some hypothetical market. Their annual supply schedules are given by the following table: Price (Dollars per piece) 1 2 3 4 5 Eric's Quantity Supplied Ginny's Quantity Supplied (Pieces) (Pieces) 0 20 15 40 25 55 30 65 35 70 On the following graph, plot Eric's supply of pieces of cake using the green points (triangle symbol). Next, plot Ginny's supply of pieces of cake using the purple points (diamond symbol). Finally, plot the market supply of pieces of cake using the orange points (square symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. ?
5. Producer surplus for a group of sellers The following graph plots a supply curve (orange line) for several sellers in the market for motor scooters in College Park, a university town in Maryland. Each seller has a single motor scooter for sale. The market price of motor scooters is given by the horizontal black line at $300. Each rectangle on the graph corresponds to a particular seller in this market: blue (circle symbols) for Felix, green (triangle symbols) for Janet, purple (diamond symbols) for Larry, tan (dash symbols) for Megan, and orange (square symbols) for Raphael. (Note: The name labels are to the right of the corresponding segment on the supply curve.) Use the rectangles to shade the areas representing producer surplus for each person who is willing to sell a motor scooter at a market price of $300. (Note: If a person will not sell a motor scooter at the market price, indicate this by leaving their rectangle in its original position on the palette.) PRICE (Dollars per…
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1. Consider the market for lattes in Milwaukee, as described below: Price (per latte) $4.50 S 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 200 600 1,000 1,400 1,800 Quantity of lattes (in cups) Suppose that Milwaukee imposes a price floor of $2.50 on lattes. Calculate each of the following quantities, showing your work or describing how you found the answer. Please also show each quantity on the graph. A. Surplus/Excess Quantity. B. Deadweight loss. C. Consumer Surplus. D. Producer Surplus. E. Transfer from consumers to producers.
PRICE (Dollars per pastry) 9.00 8.25 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 1.50 0.75 0 Price Supply 0 2 + 4 6 Kenji's Weekly Supply A 8 10 12 14 16 QUANTITY (Pastries) 18 20 22 24 Using the previous graph, you can determine that Kenji is willing to supply his 6th weekly pastry for $ the producer surplus earned from supplying the 6th pastry is $ Since he receives $2.25 per pastry, Suppose the price of pastries were to rise to $3.00 per pastry. At this higher price, Kenji would receive a producer surplus of $ pastry he sells. from the 6th
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Suppose that Gilberto and Juanita are the only suppliers of collectible action figures in a particular market. The following table shows th supply schedules: Price Gilberto's Quantity Supplied Juanita's Quantity Supplied (Dollars per action figure) (Action figures) (Action figures) 2 10 4 8 18 6 12 24 8 14 28 10 16 30 On the following graph, plot Gilberto's supply of collectible action figures using the green points (triangle symbol). Next, plot Juanita's supply collectible action figures using the purple points (diamond symbol). Finally, plot the market supply of collectible action figures using the orang (square symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. 12 10 Gilberto's Supply Juanita's Supply Market Supply MacBook Pro CE (Dollars per action figure)
6. Individual and market supply Suppose that Carlos and Deborah are the only suppliers of boots in some hypothetical market. Their annual supply schedules are given by the following table: Price (Dollars per pair) 10 20 30 40 50 Ceed and Carlos's Quantity Supplied Deborah's Quantity Supplied (Pairs) (Pairs) 0 12 24 32 40 44 B 16 24 On the following graph, plot Carlos's supply of boots using the green points (triangle symbol). Next, plot Deborah's supply of boots using the purple points (diamond symbol). Finally, plot the market supply of boots using the orange points (square symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. 28 32 Carlos's Supply Deborah's Supply
Producer surplus is the difference between the price consumers pay and the supply curve The graph on the right depicts the supply and demand curves for a market in competitive equilibrium 1.) Using the triangle drawing tool, highlight the area on the graph that represents producer surplus. Label this area 'PS". Carefully follow the instructions above and only draw the required object. Using your graph, calculate the producer surplus in this market Producer surplus is (Round your response to two decimal places) Price Quantity D COO
7. Producer surplus for an individual and a market Suppose the market for gourmet cupcakes is perfectly competitive, so sellers take the market price as given. Dmitri manages a bakery that offers gourmet cupcakes for sale. The following graph plots Dmitri's weekly supply curve (orange line). Point A represents a point along his supply curve. The price of gourmet cupcakes is $2.25 per cupcake, which is given by the black horizontal line. PRICE (Delars per cupcake) ( 7:50 4.75 9.00 4.50 7.50 3.75 3.75 4.50 0.75 0 0 Price Supply 0.75 + 2 Using the previous graph, you can determine that Dmitri is willing to supply his 6th weekly cupcake for cupcake, the producer surplus earned from supplying the 6th cupcake is Suppose the price of gourmet cupcakes were to rise to $3.00 per cupcake. At this higher price, Dmitri would receive a producer surplus of from the 6th cupcake he sells. The following graph plots the weekly market supply curve (orange line) for gourmet cupcakes in a hypothetical small…