5. Refer to the diagram below: 3.50 300 250+ 200 150+ 100+ 50+ 4 Demand 50 (a) If the price of the good is 250, what is the consumer surplus? (b) The value of the good to consumers minus the cost of the good to consumers amounts to 325. What is the price of the good?
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- The following table shows the demand and supply of tickets of a football game which will be held at Shah Alam Stadium. Unit Price (RM) Market Demand (units) Market Supply (units) 20 5000 3500 40 4000 3500 60 3000 3500 80 2000 3500 100 1000 3500 a) On your foolscap paper, draw the demand and supply curves. Label all axes, all curves and the equilibrium point. (6m) b) How much is the equilibrium price and equilibrium quantity? (2m) c) At which price will there be a surplus of 2500 tickets? (1m) d) What will happen when the market price is RM40? Show your answer on the same diagram. (3m) e) Why is the supply of tickets fixed at 3500? (1m)Question 1 Suppose the demand and supply for eggs in a small economy are given by: QD=100-20P Qs=-20+40P Where, Qo and Qs are in thousand dozen of eggs and P is the price per dozen of eggs. a. b. Find the total surplus if only 50 thousand dozen eggs are produced and sold. Indicate the area of total surplus in a figure. Find the total surplus if 80 thousand dozen eggs are produced and sold. Indicate the area of total surplus in a figure. Suppose eggs can be imported to the domestic egg market and domestic consumers can buy any amount at $1.5 per dozen. d. Comparing to part a, compute the change in consumer surplus. e. For the change in consumer surplus in d, compute the change in consumer surplus for new consumers and the change in consumer surplus to initial consumers. Find the consumer surplus, producer surplus and total surplus at the market equilibrium. Draw a well-labeled figure to illustrate the surpluses. C.11:13 AM Mon 22 Mar @ 62% McGraw-Hill ConnectEd Question 4 Section 1: 4/30 A Surplus $12 10 | 4 demanded At $9 there is a surplus of burritos 44 supplied 8. 2 4 12 20 28 36 44 52 60 Quantity The graph indicates a surplus of burritos at a price of $9. Why did this surplus occur? 200 words remaining Save & Continue » Price 4.
- What is meant by consumer surplus? a It is the total quantity of a good bought by a consumer divided by the price paid. b It is a measure of an individual consumer's utility from the consumption of a good. c It is the difference between a consumer's maximum willingness to pay and the price. d It is a measure of the total benefit to consumers from the purchase of a good.PRICE (Yen per gram) 100 90 80 70 60 40 30 20 10 0 0 0 Demand + 20 40 60 80 100 120 140 160 180 200 QUANTITY (grams of uff per month) Graph Input Tool Demand for Uff Price of Uff (Yen per gram) to eat my uff this morning, but there wasn't any Quantity Demanded DEMAND SHIFTERS Average Income -(Yen per month) Price of Tulg (Yen per gram) Price of Snick (Yen per gram) Of Suppose that the price of a gram of uff decreased from 50 yen to 40 yen. This would cause a an increase in 50 100 100 20 50 Plug any value lower than the current number into the Average Income box. A decrease in average income causes a leftward the demand curve. the demand curve and therefore When the prices of tulg or snick change, there is a shift of the demand curve for uff. The directions of these changes imply that snick and uff are , and that tulg and uff are . For example, a Hermetian might say, "I went in my fridge. So instead of having uff for breakfast, I ate some1.An increase in the cost of flour used to bake bread is most likely to (a) decrease the demand for bread. (b) increase the supply of bread. (c) decrease the supply of bread. (d) increase the demand for bread. 2. Which of the following will result in a decrease in the equilibrium quantity of a good? (a) An increase in both demand and supply. (b) A decrease in both demand and supply (c) An increase in demand together with a decrease in supply. 4. (d) A decrease in demand together with an increase in supply
- 1. The graph below shows the Demand Curve and Supply Curve for a particular item (a) Label the Demand Curve and the Supply Curve. (b) Explain how you know which curve is the Demand curve and which curve is the Supply curve. (c) Label the Equilibrium Point (re. Pe) and mark z, and p, on the appropriate axes. (d) Shade and label the region whose area represents the Producer Surplus. (e) Shade and label the region whose area represents the Consumer Surplus. Show Transcribed Text S 2. The demand function for a product is p product is p²+12r+23. C and the supply function for the same (a) Sketch the graph of both the supply and demand functions (on the same axes) for 0 ≤ ≤ 10. Clearly label the axes and the curves (b) Find the equilibrium point (hint: do this with your calculator). Label the equi- librium point on your graph above. (c) Find the consumer's surplus at the equilibrium point. Show your organized work.a. Draw a supply-demand graph in the market for milk. Indicate equilibrium price and equilibrium quantity. b) in the same graph, indicate a price at which there is a surplus of milk. Show the surplus of milk in your graph.essment 1 P 46 40 40 :44 30 E₁ 24 24 E2 100 150 S -D2 -D1 The graph shown portrays a subsidy to buyers. The subsidy causes Saved units to be sold in this market.
- 7. Total economic surplus The following diagram shows supply and demand in the market for laptops. Use the black point (plus symbol) to indicate the equilibrium price and quantity of laptops. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. PRICE (Dollars per laptop) 250 225 200 175 150 125 100 75 50 25 0 0 Demand Supply 35 70 105 140 175 210 245 280 315 350 QUANTITY (Millions of laptops) Total surplus in this market is $ million. + Equilibrium A Consumer Surplus Producer Surplus (?)Assume gadgets are sold in a competitive market, the equilibrium price is $6, and the equilibrium quantity is 500 units. (a) Using the numerical values above, draw a correctly labeled graph of the market for gadgets and show each of the following. (i) The equilibrium price (ii) The equilibrium quantity (b) At a price of $8 per unit, will there be a surplus or a shortage in the market? Explain. (c) Assume gadgets now become more popular. On your graph in part (a), show the effect of the increase in gadgets' popularity on the equilibrium price and quantity of gadgets. (d) Assume instead there is an increase in the price of tin, a major input in producing gadgets. What will be the effect of an increase in the price of tin on the market for gadgets? (e) If both changes in part (c) and part (d) occurred simultaneously, will the equilibrium quantity of gadgets increase, decrease, remain unchanged, or be indeterminate? Explain.Assume gadgets are sold in a competitive market, the equilibrium price is $6, and the equilibrium quantity is 500 units.(a) Using the numerical values above, draw a correctly labeled graph of the market for gadgets and show each of the following.(i) The equilibrium price(ii) The equilibrium quantity(b) At a price of $8 per unit, will there be a surplus or a shortage in the market? Explain.(c) Assume gadgets now become more popular. On your graph in part (a), show the effect of the increase in gadgets' popularity on the equilibrium price and quantity of gadgets.(d) Assume instead there is an increase in the price of tin, a major input in producing gadgets. What will be the effect of an increase in the price of tin on the market for gadgets?(e) If both changes in part (c) and part (d) occurred simultaneously, will the equilibrium quantity of gadgets increase, decrease, remain unchanged, or be indeterminate? Explain.
