No International TradeA producer willing to supply a set ofcontact lenses for $40 willtherefore receive producer surplusof ($120 - $40 = $80) when they selltheir product for $120.While we could figure this out for allproducers and add up the results,there's an easier way using thegraph.VivanGraphically, producer surplus is thearea from the market price ($120)down to the supply curve and overto the equilibrium quantity of 120.0.o Quantity SuppliedQuantity DemandedVivanDomestic MarketPriceQuantity SuppliedQuantity DemandedGot it! So what is total producersurplus in the contact lens market?24020220lio404020060601808080160100100140120120120Enter a response then click Submit below14014010016016080Subrmit18018060MacBook Air

Price Quantity supplied Quantity demanded 0 0 240 20 20 220 40 40 200 60 60 180 80 80 160…

No International Trade o Quantity Supplied Quantity Demanded Domestic Market Price Quantity Supplied Quantity Demanded 240 20 20 220 40 40 200 60 60 180 80 80 160 100 100 140 120 120 120 140 140 100 160 160 80 180 180 60

No International Trade o Quantity Supplied Quantity Demanded Domestic Market Price Quantity Supplied Quantity Demanded 240 20 20 220 40 40 200 60 60 180 80 80 160 100 100 140 120 120 120 140 140 100 160 160 80 180 180 60

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter17: International Trade

Section: Chapter Questions

Problem 2.5P

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I newconnect.mheducation.com Connect Mc Graw Macro- International Trade Happy Domestic Market No Trade Economics Mentor No International Trade Consumer surplus, on the other hand, is the difference between the price consumers are willing and able to pay for contacts and the actual price that they pay. Vivan Graphically, consumer surplus is the area from the market price up to the demand curve and over to o Quantity Supplied Quant the equilibrium quantity. Domestic Market Price Quantity Supplied Quantity Deman Got it! So what is total consumer 240 20 20 220 surplus in the contact lens market? 40 40 200 Julio 60 60 180 80 80 160 100 109 140 120 120 120 140 140 100 Enter a response then click Submit below 160 160 80 180 180 60 200 200 40 220 220 Submit 20 240 240 O 自國 hp 144 %23 %24 4 6. 7. 8. T. C. 10 95 %24
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