Consider the market for designer purses. The following graph shows the demand and supply for designer purses before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of designer purses in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. Before Tax 45 Demand Equibrium 40 35 Consumer Surplus 30 25 20 Producer Surplus 15 Supply 10 160 240 320 400 480 560 640 720 00 QUANTITY (Purses) PRICE (Dollars per purse)

Consider the market for designer purses. The following graph shows the demand and supply for designer purses before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of designer purses in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. Before Tax 45 Demand Equibrium 40 35 Consumer Surplus 30 25 20 Producer Surplus 15 Supply 10 160 240 320 400 480 560 640 720 00 QUANTITY (Purses) PRICE (Dollars per purse)

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 1SQP

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The following diagram shows supply and demand in the market for tablets. Use the black point (plus symbol) to indicate the equilibrium price and quantity of tablets. 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.
Market researchers have studied the market for milk and their estimates for the supply of and the demand for milk per month are as follows a. Using the data, graph the demand for and the supply of milk. Identify the equilibrium point as E, and use dotted lines to connect E to the equilibrium price on the price axis and the equilibrium quantity on the quantity axis. b. Suppose the government enacts a milk price support of $8 per gallon. Indicate this action on your graph, and explain the effect on the milk market. Why would the government establish such price support? c. Now assume the government decides to set a price ceiling of $4 per gallon. Show and explain how this legal price affects your graph of the milk market. What objective could the government be trying to achieve by establishing such a price ceiling?
There is a shortage of college basketball and football tickets for some games, and a surplus occurs for other games. The following graph shows the market for the football team home games. Suppose that your favorite football team has a stadium that seats 25,000 people and that for every game during the season, the football team administrators charge $15 for tickets. The demand curve for the tickets for the top-of-the-league games is labeled DTop, and the demand curve for the tickets for the low-ranked games is labeled D Low. On the following graph, use the green points (triangle symbol) to plot the supply curve for the tickets for the football team home game. Then use the grey points (star symbol) to plot the demand curve according to the team administrators. PRICE (Dollars per ticket) 99 NOGOMETNO 0 10 The price of $15 per tickets will result in 20 30 40 QUANTITY (Thousands of tickets) DLOW The number of tickets demanded will be I exceeds the quantity of tickets 50 D TOP 60 tickets…
Find the consumers’ surplus and the producers’ surplus at the equilibriumprice level for the given price–demand and price–supply equations and draw the graph. (You may round all values to the nearest integer). p = D(x) = 185e-0.005x p = S(x) = 25e 0.005x
In the market for widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. The equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. As a result, the government is able to raise $750 per month in tax revenue. We can conclude that the equilibrium quantity of widgets has fallen by 25 per month. 50 per month.
There is a shortage of college basketball and football tickets for some games, and a surplus occurs for other games. The following graph shows the market for the football team home games. Suppose that your favorite football team has a stadium that seats 25,000 people and that for every game during the season, the football team administrators charge $15 for tickets. The demand curve for the tickets for the top-of-the-league games is labeled Drop, and the demand curve for the tickets for the low-ranked games is labeled D Low On the following graph, use the green points (triangle symbol) to plot the supply curve for the tickets for the football team home game. Then use the grey points (star symbol) to plot the demand curve according to the team administrators. PRICE (Dollars per ticket) 2887882022INATO 10 The price of $15 per tickets will result in The team will sell D Law 20 30 40 QUANTITY (Thousands of tickets) 50 DTOP exceeds the quantity of tickets 60 tickets sold. Suppose that the…
Based on this graph,Calculate the consumer surplus from 500 pairs of shoes?
Sketch out (on scratch paper) or else imagine a market for pizza with a linear demand curve that starts at zero Q-demanded when P =$10 and then intersects Supply at P = $8 Q = 100. Find the consumer surplus for that scenario. Just the $ amount but no $ sign.
Price per unit ($) The diagram to the right is a basic supply and demand graph. Economists use it to analyze equilibrium price and quantity in a market. 10 00 When price equals $8, a surplus occurs. 9.00- 1.) Using the line drawing tool, draw a horizontal line from the $8 value on the vertical axis to represent the surplus Label this line 8.00- "Price 7.00- 2) Using the point drawing tool, locate quantity demanded (label the point P,) and quantity supplied (label the point P,) at this price of $8 6.00- Carefully follow the instructions above and only draw the required objects. 5.00 4.00- 3.00- 2.00 1.00- onal 0.00- 10 70 80 Quantity per unit of time 20 30 40 50 60 90 100
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Suppose that you decide to start a new business of making children’s ready-made garments. Make a (Hypothetical) linear supply schedule with 7 different price points and corresponding quantity supplied for your business. Make a graph showing equilibrium, shortage and surplus in the ready-made garments market. Give interpretation of this graph. Suppose cheap ready-made garments are imported from China. Draw a graph to show changes in equilibrium price and quantity for the Pakistani ready-made garments market. Give interpretation of this graph. Suppose that to boost the local industry, the Pakistani government gives subsidy on electricity prices. Draw a graph to show changes in equilibrium price and quantity. Give interpretation of this graph. Suppose that cheap cloth is imported from China for production of readymade garments and at the same time tourism in Pakistan increases bringing many more buyers of ready-made garments in the market. What will be impact on equilibrium price and…
You are given the following market data for Venus automobiles in Saturnia. Demand: P = 35,000 - 0.5Q Supply: P = 8,000 + 0.25Q where P = Price and Q = Quantity. a. b. C. Calculate the equilibrium price and quantity. Calculate the consumer surplus in this market. Calculate the producer surplus in this market. Use the editor to format your answer