Homework 4 Compatibility ModeOSearchReferencesMailingsReviewViewHelpText BoxA A Aa A三 TAaBbCcl AABBCI AaBbC AaB AaBbccE xA .A-出。1 Normal 1 No Spac. Heading 1TitleSubtitleStylesFontParagraph6. Melinda buys an iPhone for $700 and gets a consumer surplus of $160.a. What is her willingness to pay?b. If she had bought the iPhone on sale for $500, what would herconsumer surplus have been.c. If the price of an iPhone were $900, what would her consumersurplus have been?7. The demand schedule for toasters, is given below. The price of toasters is $20.a. Graph the demand curve to scale and identify the area that represents theconsumer surplus(S)(millions)12010100208030604040502060b. Calculate the consumer surplus for toasters.hpho144%23&34.5.6.7.8.6.COLO Homework 4 Compatibility ModeO SearchReferencesMailingsReviewViewHelpA A Aa A三 TAABBCCI AaBbCI AaBbC A aB AaBbCccx A- I vA-三加三。|、田、1 Normal1 No Spac. Heading 1TitleSubtitleParagraphStylesont9. Toasters again! The demand and supply schedule for toasters, is given below.a. Graph the supply and demand curves to scale and identify the areas that representthe consumer surplus and producer surplusQoQs($)(millions)(millions)12010100102080203060304040405020506060b. What are the equilibrium quantity and price?Qe =Pe =c. Calculate consumer surplus, producer surplus and total surplus.DFoushp

6. Melinda buys an iPhone for $700 and gets a consumer surplus of $160. a. What is her willingness to pay? b. If she had bought the iPhone on sale for $500, what would her consumer surplus have been. c. If the price of an iPhone were $900, what would her consumer surplus have been?

6. Melinda buys an iPhone for $700 and gets a consumer surplus of $160. a. What is her willingness to pay? b. If she had bought the iPhone on sale for $500, what would her consumer surplus have been. c. If the price of an iPhone were $900, what would her consumer surplus have been?

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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Pricing with Market Power and Consumer SurplusPat’s Patriotic Tattoosis the only tattoo parlor in town.Pat tattoos only images of the American flag. Thereare 20 consumers whoare willing to buy a tattoo. Each consumeris interested in buying only onetattoo,butthey vary in their willingness to pay. One consumeris willing to pay $20for a tattoo; anotheris willingto pay $19; a third, $18, down to the consumerleast willing to pay whohasareservationprice of $1. The Effects of Price DiscriminationUse the exampleofPat’s Patriotic Tattoos to make some conclusions abouttheeffects of pricediscrimination.8. What happensto consumersurplusif a firm successfully price discriminates?9. What happenstothefirm’s profits if it successfully price discriminates?10. What happensto the quantity supplied by a successful price-discriminating monopoly firm compared with a nonprice-discriminating monopoly firm?11. How doesthe quantity supplied by a successful price-discriminating monopoly firm compare.with the…
Bookmarks ory Profiles Help Tab Window O 令 ntent + wku.blackboard.com/ultra/courses/_165411_1/cl/outline Updat oard P pearson/MyLab M. W WordCounter O Quizlet 国 Readin * Question Completion Status: Figure 7-4 ↑Price F B P2 Demand Q1 Q2 Quantity Refer to Figure 7-4. Which area represents the increase in consumer surplus when the price falls from P1 to P2? O a. ABDG О Б. АВС OC. AFG O d. BDF Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit OCT 19 tv w MacBook Pro %23 24 % 3. 4 6. 7 8. 9.
Homework 4- Compatibility Mode O Search References Mailings Review View Help Text Box A A Aa A E-E-E EE T AaBbCcI AaBbCcI AaBbC AaB AABBCCD T Normal 1 No Spac. Heading 1 Title Subtitle xA- vA- Styles ant Paragraph 6. Melinda buys an iPhone for $700 and gets a consumer surplus of $160. a. What is her willingness to pay? b. If she had bought the iPhone on sale for $500, what would her consumer surplus have been. c. If the price of an iPhone were $900, what would her consumer surplus have been? 7. The demand schedule for toasters, is given below. The price of toasters is $20. a. Graph the demand curve to scale and identify the area that represents the consumer surplus QD (millions) P ($) 120 10 100 20 80 30 60 40 40 50 20 60 b. Calculate the consumer surplus for toasters. DFocus hp ho 14 f8 fg 144 10 %2:
18. The next few questions are about this generic market with a negative consumption externality. Fill in the welfare table below with the areas associated with each welfare measure. aslhee or batoob A P. 1 F H. G MSB Q, Qi tax that leads to Qo CS PS tax revenue externality total surplus gqg 53 2Abbo20 (p re 9 boagns exrsLU ednsto 75 beLapor ent
PSearch Joseph f mework 4 Compatibility Mode Leferences Mailings Review View Help Text Box AаВЬСс АаВЬCcl AaBbC A ав давьсс Subtitle EA Aa A E-E-EE E T 1 Normal 1 No Spac. Heading 1 Tele A. D. A- 三。、出、 IN Styles Paragraph Section: Chapter 6: Government Policies 1. In the passage below about price ceilings and floors, certain important words have been removed and placed in the table on the right. Indicate where each of the terms ought to go in the passage, by placing the number of the gap in the table on the right. (1) is also known as a Above minimum price. It makes sure that the price remains high in order to help out Below (2) of the product. In order to be effective, it must be set Consumers (3) the equilibrium price. (4), which It results in a is also known as excess supply. An example of this type of price control is a Minimum wage Price ceiling (5). On the other hand, a (6) is also known as a Price floor maximum price. It makes sure that the price remains low in order to help…
Four roommates are planning to spend the weekendin their dorm room watching old movies, and theyare debating how many to watch. Here is theirwillingness to pay for each film:Dwayne Javier Salman ChrisFirst film $7 $5 $3 $2Second film 6 4 2 1Third film 5 3 1 0Fourth film 4 2 0 0Fifth film 3 1 0 0a. Within the dorm room, is the showing of a moviea public good? Why or why not?b. If it costs $8 to stream a movie, how many moviesshould the roommates stream to maximize totalsurplus?c. If they choose the optimal number from part (b)and then split the cost of streaming the moviesequally, how much surplus does each personobtain from watching the movies?d. Is there any way to split the cost to ensure thateveryone benefits? What practical problems doesthis solution raise?e. Suppose they agree in advance to choose theefficient number and to split the cost of the moviesequally. When Dwayne is asked his willingness topay, will he have an incentive to tell the truth? Ifso, why? If not, what will he…
Your grandmother likes old-fashioned yard salesand doesn’t understand why everyone is so excitedabout eBay. Explain to her why the creation of amarket that enables people who don’t live in thesame town to buy and sell used goods increasestotal surplus over the yard-sale market.
Table 1Buyer Willingness To PayLori $50.00Audrey $30.00Zach $20.00Calvin $10.002. Refer to Table 1. If the price of the product is $15, then who would be willing to purchase theproduct?a. Lorib. Lori and Audreyc. Lori, Audrey, and Zachd. Lori, Audrey, Zach, and Calvin3. Refer to Table 1. If price of the product is $30, then the total consumer surplus isa. $-10.b. $-6.c. $20.d. $30.
Questoon 3 a)It is Soud that change in demanol ond change in quantty demanded are dofferent Concepts thot cannot Sub Stitute ealh other. With the aid of a grophical Elestrotion, discurs the truth obout this Stotement. 6) Economists argue that ot os #hot wrong for the government to intefere with the operotions of the market System because government interention with ecther ceiling prices or floor prèces or fl0or prices does not serve the interest the masses of society but rother aggravates their pioblems- DisE of Discuss. C) hist s cherocteristis of perfect Competition.
op Women's.. ogand v y Home ourses talog and Study Tools ntal Options lege Success Tips eer Success Tips ENDED FOR YOU ULTS vated by Focusing mes Feedback << C Logout CENGAGE MINDTAP Homework (Ch 08) 3. Relationship between tax revenues, deadweight loss, and demandelasticity PRICE (Dollars per windbreaker) 60 55 The government is considering levying a tax of $25 per unit on suppliers of either windbreakers or bucket hats. The supply curve for each of these two goods is identical, as you can see on each of the following graphs. The demand for windbreakers is shown by Dw (on the first graph), and the demand for bucket hats is shown by DB (on the second graph). 50 Suppose the government taxes windbreakers. The following graph shows the annual supply and demand for this good. It also shows the supply curve (S + Tax) shifted up by the amount of the proposed tax ($25 per windbreaker). 45 On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax…
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Look at the tables below. Person Bob Barb Bill Bart Brent Betty $ Maximum Price Willing to Pay $17 14 13 12 11 10 Person Carlos Courtney Chuck Cindy Craig Chad 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? $ c. What is the total surplus if Bob buys a unit from Chad? Minimum Acceptable Price $6 7 8 9 10 11 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?