Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 7, Problem 1QCMC
To determine
The consumer surplus and the producer surplus .
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Jen values her time at $60 an hour. She spends 2 hours giving Colleen a massage.Colleen was willing to pay as much at $300 for the massage, but they negotiate a priceof $200. In this transaction,a. consumer surplus is $20 larger than producer surplus.b. consumer surplus is $40 larger than producer surplus.c. producer surplus is $20 larger than consumer surplus.d. producer surplus is $40 larger than consumer surplus
Neha buys an iPhone for $240 and gets a consumer surplus of $160.
Her willingness to pay for an iPhone is
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If she had bought the iPhone on sale for $180, her consumer surplus would have been
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If the price of the iPhone had been $500, her consumer surplus would have been
A. The demand curve for a product is D = -2p + 800 , where the demand is units , and p is the price in $ . When the price is $ 100 , calculate the consumer surplus . Also , show a graph that indicates the consumer surplus .
B. The supply curve for a product is S = 5p - 400 , where the supply is 5 units , and p is the price in $ . When the price is $ 200 , calculate the producer surplus . Also , show a graph that indicates the producer surplus
Chapter 7 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
Ch. 7.1 - Prob. 1QQCh. 7.2 - Prob. 2QQCh. 7.3 - Prob. 3QQCh. 7 - Prob. 1QRCh. 7 - Prob. 2QRCh. 7 - Prob. 3QRCh. 7 - Prob. 4QRCh. 7 - Prob. 5QRCh. 7 - Prob. 1QCMCCh. 7 - Prob. 2QCMC
Ch. 7 - Prob. 3QCMCCh. 7 - Prob. 4QCMCCh. 7 - Prob. 5QCMCCh. 7 - Prob. 6QCMCCh. 7 - Prob. 1PACh. 7 - Prob. 2PACh. 7 - Prob. 3PACh. 7 - Prob. 4PACh. 7 - Prob. 5PACh. 7 - Prob. 6PACh. 7 - Prob. 7PACh. 7 - Prob. 8PACh. 7 - Prob. 9PACh. 7 - A friend of yours is considering two cell phone...Ch. 7 - Prob. 11PA
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- Margaret will buy 3 cookies and her surplus is 4.5. Dennis will buy 4 cookies and his surplus is what? I put dennis surplus to be 24 and it was incorrect. What is Dennis surplus?arrow_forwardHow do I find the consumer and producer surplus?arrow_forwardShana decides to buy a pair of used ripped jeans for $80. She was willing to pay $100. When her friend tanya sees the jeans, she loves them and thinks they are worth $165. So she offers shana $135 for the jeans, and shana accepts. Shana and tanya are both thrilled with the exchange. The total surplus received by both shana and tanya is $ ? Part 2 Suppose that shana purchased the jeans from Maries boutique. Marie and other boutique owners in town are upset that customers like shana buy jeans at their stores, and then resell them for a higher price. Marie and the other owners convince the city government to pass a law preventing such resale. Assuming the law is successful, how much surplus is lost if shana cannot sell the jeans to tanya? $. ?arrow_forward
- Explain the difference between Consumer and producer surplus?arrow_forwardsurplus is the difference between the maximum price a consumer is (or consumers are) willing to pay for a product and the actual [market] price. A. Producer B. Consumer C. Nonearrow_forwardAmanda buys a ruby for $330 for which she was willing to pay $340. The minimum acceptable price to the seller, Tony, was $190. Amanda experiences Multiple Choice A. a consumer surplus of $10, and Tony experiences a consumer surplus of $150. B. a producer surplus of $200, and Tony experiences a consumer surplus of $10. C. a producer surplus of $10, and Tony experiences a consumer surplus of $190. D. a consumer surplus of $670, and Tony experiences a producer surplus of $200. E. a consumer surplus of $10, and Tony experiences a producer surplus of $140..arrow_forward
- Myra buys an iPhone for $280 and gets consumer surplus of $120. (a) What is her willingness to pay? (b) If she had bought the iPhone on sale for $180, what would her consumer surplus have been? (c) If the price of an iPhone were $500, what would her consumer surplus have been?arrow_forward' surplus For each of the scenarios, calculate the surplus and indicate if it is a producer surplus or a consumer Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off which she found online. She selects and purchases a $35 pair of jeans which cost $35 pre-discount Alice has a Alice's surplus: $ producer surplus. surplus consumer Nicole has a hockey puck from the 2010 Winter Olympic Games and puts it up for sale on eBay. She will only sell the puck if the winning bid is greater than or equal to $500. After bidding closes, the last bid stands at $50o Nicole has a Nicole's surplus: $ producer surplus. consumer surplusarrow_forwardAmrin goes to Sportsmart to buy a new tennis racquet. He is willing to pay $200 for a new racquet, but buys one on sale for $125. Amrin's consumer surplus from the purchase isarrow_forward
- A “Spider-man" DVD is worth $30 to Marcus. But he buys one on sale for just $15. What is the consumer surplus that results from Marcus's purchase? $10 $25 $15 Incorrect cannot be determined from the information given Incorrect. $40arrow_forwardI think the answer for the following question is $60 because of 200-140 but I am not entirely sure. Marco goes to the pet store to buy a dozen Koi fish for his new Koi pond. He is willing to pay $200 for the dozen fish, but buys them for a total of $140. Marco's consumer surplus from the purchase is A) $5. B) $60. C) $140. D) $200.arrow_forwardLarry purchases a book for $10, and his consumer surplus is $3. How much is Larry willing to pay for the book?arrow_forward
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