Based on the information on the previous graph, you can tell thattotal consumer surplus in this market will be $Suppose the market price of a bluetooth speaker increases to $100.On the following graph, use the rectangles once again to shade the areas representing consumer surplus for each person who is willing and able topurchase a bluetooth speaker at the new market price: orange (square symbols) for Andrew, green (triangle symbols) for Beth, purple (diamondsymbols) for Darnell, tan (dash symbols) for Eleanor, and blue (circle symbols) for Jacques. (Note: If a person will not purchase a bluetooth speakerat the new market price, indicate this by leaving his or her rectangle in its original position on the palette.)PRICE (Dollars per bluetooth speaker)16014012010080602000Andrew1BethDarnell2Eleanor5Market Price34QUANTITY (Bluetooth speakers)Jacques678AndrewBethDarnellEleanorwill buy bluetooth speakers at the given market price, andJacquesBased on the information in the second graph, when the market price of a bluetooth speaker increases to $100, the number of consumers willing tobuy a bluetooth speakertoand total consumer surplusto SSThe following graph plots the demand curve (blue line) for several consumers in the market for bluetooth speakers in Meade, a small town located inKansas. The Meade market price of a bluetooth speaker is given by the horizontal black line at $60.Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Andrew, green(triangle symbols) for Beth, purple (diamond symbols) for Darnell, tan (dash symbols) for Eleanor, and blue (circle symbols) for Jacques. Use therectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a bluetooth speaker at a marketprice of $60. (Note: If a person will not purchase a bluetooth speaker at the market price, indicate this by leaving his or her rectangle in its originalposition on the palette.)PRICE (Dollars per bluetooth speaker)1601401201008060402000Andrew1BethDarnell2Eleanor5Market PriceJacques634QUANTITY (Bluetooth speakers)78Based on the information on the previous graph, you can tell thattotal consumer surplus in this market will be $Suppose the market price of a bluetooth speaker increases to $100.AndrewBethDarnellEleanorJacqueswill buy bluetooth speakers at the given market price, and

Total consumer surplus refers to the full benefit or value that consumers acquire from an amazing…

Answered: consumer surplus in

Business

Economics

consumer surplus in

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter5: Consumer Choice: Individual And Market Demand

Section: Chapter Questions

Problem 6TY

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The following graph shows the demand curve for a group of consumers in the U.S. market (blue line) for tablets. The market price of a tablet is shown by the black horizontal line at $120. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Paolo, green (triangle symbols) for Sharon, purple (diamond symbols) for Van, tan (dash symbols) for Amy, and blue (circle symbols) for Carlos. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a tablet at a market price of $120. (Note: If a person will not purchase a tablet at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) Based on the information on the previous graph, you can tell that____will buy tablets at the given market price, and total consumer surplus in this market will be___ Suppose the market price of a tablet decreases…
The following graph shows the demand curve for a group of consumers in the U.S. market (blue line) for tablets. The market price of a tablet is shown by the black horizontal line at $80. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Larry, green (triangle symbols) for Megan, purple (diamond symbols) for Raphael, tan (dash symbols) for Susan, and blue (circle symbols) for Alex. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a tablet at a market price of $80. (Note: If a person will not purchase a tablet at the market price, indicate this by leaving his or her rectangle in its original position on the palette.)
Ayana is pitching an idea for a startup company that makes and sells solar-powered phonechargers (C). Her market research has found that consumer demand for this product can beexpressed as a function of the price of the charger itself (PC), the price of phones (PF), andthe consmer’s income (I). Consumer demand can be described by the function C(PC, PF, I) =(i−10PC)/ (PF) Suppose her chargers come in all different capacities to meet any quantity demanded, so youdon’t need to worry about restricting C to whole numbers for this problem. (a) Does this product satisfy the law of demand?Explain. (b) Calculate consumers’ income elasticity as a function of the parameters. (c) Anaya is targeting a market whose income is expected to double over the next five years.Explain whether she should expect the demand for chargers to increase or decrease, andby how much, using the language of normal, inferior, luxury, and necessity goods. (d) Calculate the cross-price elasticity ofCwith respect toPF. (e)…
Ayana is pitching an idea for a startup company that makes and sells solar-powered phonechargers (C). Her market research has found that consumer demand for this product can beexpressed as a function of the price of the charger itself (PC), the price of phones (PF), andthe consmer’s income (I). Consumer demand can be described by the function C(PC, PF, I) =(i−10PC)/ (PF) Suppose her chargers come in all different capacities to meet any quantity demanded, so youdon’t need to worry about restricting C to whole numbers for this problem. (a) Does this product satisfy the law of demand?Explain.
The owner of Grand Central Bookstore is looking into the sales of its Health & Fitness magazine section. She finds that her equilibrium is at 800 magazines per month sold at an average price of $4.75 per magazine. When the price of these Health & Fitness magazines rose to $5.00 each, the quantity sold fell to 725 magazines per month, while the quantity supplied to her increased to 900 a month. From the scenario described, answer the questions below. Draw an appropriate graph for Grand Central’s Bookstore’s to illustrate this change in the Health & Fitness magazines market position when the price rises to $5.00. Calculate the price elasticity of demand for the Health & Fitness magazines between prices $4.75 and $5.00. Is it elastic or inelastic? How do you know? Calculate the price elasticity of supply for the Health & Fitness magazines between prices $4.75 and $5.00. Is it elastic or inelastic? How do you know based on your answer? The owner also noticed that…
Suppose that Paolo and Sharon are the only consumers of ice cream cones in a particular market. The following table shows their monthly demand schedules: Price Paolo’s Quantity Demanded Sharon’s Quantity Demanded (Dollars per cone) (Cones) (Cones) 1 8 16 2 5 12 3 3 8 4 1 6 5 0 4 On the following graph, plot Paolo’s demand for ice cream cones using the green points (triangle symbol). Next, plot Sharon’s demand for ice cream cones using the purple points (diamond symbol). Finally, plot the market demand for ice cream cones using the blue points (circle symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right.
Often, firms offer a larger quantity (milk, paint, toilet paper, a cup of Coke, second dress, second pizza…) at a lower price. For example, a 12 oz cup of Coke is $1, and a 32 oz cup is $1.70. What explains this marketing strategy? With the help of graphs (economic models) demonstrate.
Based on Nick's willingness to sell, plot his supply curve as a step function on the following graph using the orange points (square symbol). Be sure to plot your first point at (0, 0). Price of Water 10 9 100 8 7 8 10 3 2 1 0 0 2 3 Quantity of Water Suppose the price of a bottle of water is $4. In this case, Nick receives $ 5 If the price rises to $6, Nick now sells Nick's Supply Price = $4 Use the black line (plus symbol) to draw a price line at $4. Next use the grey point (star symbol) to indicate how many bottles of water Nick will produce and sell at that price. Finally, use the purple point (diamond symbol) to shade the area that represents Nick's producer surplus. bottles of water. This Quantity Sold Producer Surplus in producer surplus from his water sales. his producer surplus to $
Question 10 Which of the following startements about network externalities is CORRECT? Air pollution is an example of a network externality. For a good with network externalities, the number of people who are willing to buy a unit of the good is uniquely determined by the price. Network externalities are always positive. The manufacturer of a new good with network externalities might give away a free version of the good. For a good with network externalities, one person's valuation of the good is always increasing in the number of other people using the good.
5. 24.A large Coca-Cola vendor recently hired some economic analysts to assess the effect of a price increase in its 16-ounce bottles from $1.00 to $2.00. The analysts determined that, on average, the vendor's customers spend about $15.00 on soda (Coke and all other brands) each week, and the average price for other 16- ounce soda bottles is $1.00. The analysts also utilized some focus groups to determine the preferences of the vendor's customers. They used this analysis to build the following graph: Bottles of Budget line with price of $1.00 Other Soda Budget line with price of $2.00 Bottles of Coke Suppose Xo = 9 and X1 = 7. Should the vendor expect to sell 7, more than 7, or less than 7 bottles of Coke after raising the price to $2.00 if Coke is a normal good?
You are in the market for a new couch and havefound two advertisements for the kind of couchyou want to buy. One seller notes in her ad that sheis selling because she is moving to a smaller apartment, and the couch won’t fit in the new space.The other seller says he is selling because the couchdoesn’t match his other furniture. Which seller doyou expect to buy from? Why? ( Hint: Think whowould be the more motivated seller.)
Let be following table of marginal utility data that you have been able to calculate for two goods that your company sells, at rate: Quantity X1 Marginal Utility X1 Quantity X2 Marginal Utility X2 1 600 1 140 2 580 2 130 3 560 3 120 4 540 4 100 5 520 5 80 6 500 6 60 Suppose that a government campaign has been initiated and negatively affects good X1, such that marginal utility of good X1 is estimated to decrease by 40 for each unit of this good.Given above, if prices of goods are p1= 20, p2= 5 and Total Revenue is 115, then:(a) What quantities of goods allow consumer to achieve maximum utility? Graphb) If, to compensate for negative campaign, company carries out a more aggressive advertising with good X2 such that, marginal utility of each good improves by 20 for each unit; and also company gives a voucher for $5 to each consumer, then, what would be quantities of X1 and X2 that maximizes consumer's utility? Graph