The following table shows Carly and Emma's maximum willingness to pay for paint supplies and drawing suppliesfrom the same seller. Assuming MC=0, how much producer surplus does the firm earn if they price the goodsindividually? How much producer surplus does the firm earn if they bundle the goods?Maximum WillingnessCarlyTo PayEmmaPaint$15.00$60.00SuppliesDrawing$50.00$30.00Suppliesa. $120; $130b. $110; $130c. $120; $90d. $110; $150

Step 1: To find producer surplus, determine market demand for each good (individually and bundled),…

Answered: The following table shows Carly and…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 1PA

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Consideracompetitivemarketwheremarketdemandandthemarketsup- ply are given, respectively, byQD =1000−100P and QS =100P a)Findthecompetitiveequilibriumprice,quantity,andproducersurplus. (b) Suppose the government wants to help the consumers by imposing a price ceiling of Pc = 4. Find the market equilibrium price, quantity, and producer surplus. (c) Suppose now the producers are complaining, and the government de- cides to keep the price ceiling policy, but at the same time, the government will give a subsidy of s per unit to the producers. What is value of s that can make the producers as well off as before imposing the price ceiling (that is, producer surplus equals to the value in part (a))? Please express final numerical answers in decimal format
The following graph shows the supply curve for a group of students looking to sell used graphing calculators. Each student has only one used calculator to sell. Each rectangular segment under the supply curve represents the "cost," or minimum acceptable price, for one student. Assume that anyone who has a cost just equal to the market price is willing to sell his or her used calculator. 300 250 Rosa 200 Area: 200 Nick 150 Latasha A O 100 Jake Frances 50 Dmitri 2 3 6 QUANTITY (Used calculators) PRICE (Dollars per used calculator) B.
Say in a market we haveDemand is P = 5 – 0.005QSupply is P = 0.00125Qa-you will have a graph with price on the vertical axis and quantity on the horizontal axis formost parts of this problem. You will want to show intercept values and equilibrium values withthe specific values from the problem (when you graph the supply show it go out at least to thesame level of Q as the Q intercept for the demand curve).b-what are the equilibrium price and quantity traded in the market?c-say the government levies an excise tax in the market of 50 cents that renders the supply tonow be P = .00125Q + 0.5 (essentially the supply curve shifts up by 50 cents at each quantity).What are the new equilibrium price and quantity traded in the market with this excise tax?d-did the market price increase by as much as the 50 cent tax? (compare the market priceincrease with the amount of the tax of 50 cents)e-what is then loss in consumer surplus from the tax? Do consumers like excise taxes?f-what is the elasticity…
Type X Flonda $70 $30 $0 O $110 Od $125 Clemson $45 $580 $70 311 The table above as the willingness to pay for tickets to USC-Flonda and USC Clemon football games There are equal anbers of each type of consumer and the cost of peorading the ticket is amaned to be a Suppose that USC bundles the tickets to the two games together. What pere will they charge for the bulle OASIS 2650
In the market for gold jewelry (unlike the marketfor gold ore), products come in a range of designs,styles, and levels of quality. Which of the characteristics of a competitive market is violated in thejewelry market? What does this imply for consumers’ willingness to buy from different producers?
New York City government auctions taxi medallions that give theright to transport passengers by taxi. Because the governmentcontrols the number of medallions, market forces do not determinetheir price. First research how New York tries to control the taxicab industry through medallions and how much the price ofmedallions is.
The table Consumer Surplus and Phantom Tickets shows each student's willingness to pay for a Phantom of the Opera ticket. Assume that each student wants to buy one ticket. If the price of a ticket to see Phantom of the Opera is $50, then the total consumer surplus for the five students is: Willingness Student to pay Jessicat 150 Jackeling 125 Bradx 105 Roberta 60 Gweng 25% tudent Willingness to pay Jessica 150 Jackelin 125 Brad 105 Robert 60 Gwen 25 A 175 В 240 Cc) 230 100
A recent study found that the demand and supply schedules for financial calculators are as follows: Price/calculators Quantity Demanded Quantity Supplied 20 160 40 40 140 60 60 120 80 80 100 100 100 80 120 120 100 Co an Coll 80 60 40 D. 20 40 60 80 100 120 140 160 a) Determine: Price of Equilibrium_ and Quantity of Equilibrium b) Determine the effect of $60 Price Ceiling. Is it binding? Why? Will it cause Shortage or Surplus? And by how much? c) Determine the effect of $120 Price Floor. Is it binding? Why? Will it cause Shortage or Surplus? And by how much?
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mples of price gouging Answ x 18/1 O Resources x Give Up? O Him Suppose the graph depicts a hypothetical market for concert tickets at a local college venue. Because students are paying Market for Concert Tickets 100 such high prices, a price ceiling of $40 per concert is being considered. Move the price ceiling line to correctly depict the price 90 80 ceiling of $40. 70 60 By how much does consumer surplus (CS) change if the ৪ 50 price ceiling is imposed? 40 Price ceiling 30 $ 20 10 By how much does producer surplus (PS) decrease if the price ceiling is imposed? 10 20 30 40 50 60 70 80 90 100 Quantity (tickets) 2$ What is the value of the deadweight loss (DWL) associated with this price ceiling? bp 14yes at of BRy Price ($)

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