Which of the following is NOT one of the consequences of a binding Price Ceiling? Select one: a. an illegal black market b. a shortage c. a surplus d. a decrease in the price
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- Price (P) S $4.00 $2.50 D $0.50 200 Quantity (Q) The market shown in the figure above is in equilibrium at the socially optimal quantity of 200 units. The Demand curve captures all social benefits to consumers, and the Supply curve captures all social costs to producers. In this case, Consumer Surplus will be: Select one: a. $100 b. $300 C. $200 d. $150If the equilibrium quantity of a good is also the socially optimal quantity, then: Multiple Choice the marginal benefit to consumers of another unit of the good is zero. the marginal cost to producers of another unit of the good is zero. total economic surplus has been maximized. it's possible to make at least one person better off without hurting anyone else.For the demand curve shown, find the total amount of consumer surplus that results in the gasoline market if gasoline sells for $2 per gallon. Price ($/gallon) 12 11 10 9 8 7 6 5 4 327 1 0 Demand for gasoline 100 10 20 30 40 50 - %% Quantity (1,000s of gallons/year) 110 >120 Instructions: Enter your response as a whole number. Consumer surplus: $ per year.
- Activity #1: Consumers' and producers' surplus; equilibrium, total social gain at equilibrium price A fast food outlet finds that the demand equation for its new side dish, "Sweetdough Tidbit," is given by, 128 p= (q+1)² where p is the price in cents per serving and q is the number of servings per hour at this price. At the same time, the franchise is prepared to sell q=0.5p-1 servings per hour at a price of p cents. A) Find the price, p, and equilibrium quantity, 7. SHOW WORK.Suppose that you pay $4 for a delicious burrito. It was so good that you would have been willing to pay $10 for it. How much is your economic (consumer) surplus from this purchase? Group of answer choices $10 $6 $14 $0 $4Which of the following does the producer receive if the market price exceeds the cost of production? Question 2 options: a) Producer surplus b) Deadweight loss c) External benefit
- Dominic is willing to pay $12 for a single pizza; Stephany is willing to pay $7; and Tyler is willing to pay $5. There are no other potential consumers for pizza. Cheezbuzz, the supplier of pizza, has a cost of $1 for the first pizza, $2 for the second pizza, $3 for the third, $4 for the fourth, and so on. In a closed market equilibrium, the social surplus will be $If the daily demand curve for gasoline is as provided in the following graph, then how much consumer surplus would consumers receive if the market price for gasoline was $1.60 per litre? What about for a price of $1.20 per litre? Price ($ per litre) $3.00 $1.60 $1.20 040 120 200 280 Demand 360 440 Quantity of gasoline (millions of litres)Quantity Demanded (units) Price (dollars per unit) 250 200 40 150 80 100 120 50 160 200 Refer to the table above. If the equilibrium price is $175, what will be the consumer surplus? 4000 1000 6000 12000
- 7) Issa is regularly outside of her house and tending her flowers and gardening. Her flowers are so vibrant and colorful that everyone in the neighborhood enjoys looking at them and the property prices of all the houses in the neighborhood have increased. The marginal social benefit (MSB), marginal private benefit (MPB) and marginal cost (MC) curves of her gardening activities are drawn below.The screenshot shows a graph market for movies at equilibrium: A) Calculate Consumer, producer, and total surplus. b) Suppose in response to public outcry the government imposed a price ceiling of $8 in this market. Explain the impact on the total surplus and market efficiency.The table presents the quantities demanded of music downloads per day for two consumers. Use the information in the table to place the points in the graph to create the marginal social benefit (MSB) curve. Then calculate consumer and producer surplus. The market price of music downloads is $1 which is also equal to the marginal social cost. Price Jim's quantity 8 6 5 Market for Music Downloads Deb's quantity ($) demanded demanded 7 Price ($) 4 0 0 3 6 2 0 5 3 1 2 4 4 2 Market Price = MSC 1 3 5 3 MSB 0 2 6 4 0 1 2 3 4 5 6 7 8 9 Quantity 10 11 12 13 14 15 1 7 5 0 8 6 Incorrect Consumer surplus: $ 12.5 Incorrect 10.5 Producer surplus: $ Incorrect