Give an example of a time that you have experienced consumer surplus. Be specific and explain...
Give an example of a time that you have experienced consumer surplus. Be specific and explain exactly how much surplus you experienced and why. Give another example of a time that you experienced producer surplus. Again be specific and explain how you achieved this.
Homework Answers
Answer : Example of consumer surplus : On last Saturday I bought one dress whose printed price is $800. And I was ready to purchase that dress at $800. But the seller told me that the dress has 20% discount. So, finally I purchased the dress at $640. This means that I saved (800 - 640) = $160. This $160 is the consumer surplus. Thus, I experienced the consumer surplus of $160.
Example of producer surplus : I have a biscuit firm. One month ago the initial market price was $30 per pack of biscuit. But due to high demand suddenly the market price became $40 per pack of biscuit. As a result, my firm earns extra profit of $10 per pack of biscuit. This means that the producer surplus increases by $10 per pack of biscuit. Thus, I experienced the producer surplus.
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Give an example of a time that you have experienced consumer
surplus. Be specific and explain...
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Give a specific example of a scheduling problem you have seen or experienced. Also, explain how this problem could have been solved or prevented.
Give an example and discuss when morality should be considered in calculating producer and consumer surplus.
Give an example and discuss when morality should be considered in calculating producer and consumer surplus.
Questions 3 & 4 are more important. Explain consumer and producer surplus and provide an exa...
Questions 3 & 4 are more important. Explain consumer and producer surplus and provide an example of each. What happens to the consumer surplus and producer surplus when price increases or decreases? Explain the relationship between the tax size and deadweight loss. When tax causes deadweight loss then why it is imposed in the first place? Who gains in this situation? Also if tax has to be imposed how to determine what size of tax will generate optimum tax revenue...
Illustrate (draw a graph) consumer and producer surplus using demand and supply graph and explain how total surplus (consumer surplus plus producer surplus) can be maximised at the equilibrium level.
Illustrate (draw a graph) consumer and producer surplus using demand and supply graph and explain how total surplus (consumer surplus plus producer surplus) can be maximised at the equilibrium level.
Chapter 6 Search the internet and find a newspaper example of a price ceiling, price floor...
Chapter 6 Search the internet and find a newspaper example of a price ceiling, price floor or tax that has not already been discussed in the power point or textbook. Explain why the article is an example of a price ceiling, price floor or tax and what you can predict will happen to price, quantity demanded and quantity supplied in this market (using the supply and demand model) due to the price control/tax. Why would a government impose a price...
1. Demonstrate graphically and explain verbally the concept of consumer surplus. 2. Demonstrate graphically and explain...
1. Demonstrate graphically and explain verbally the concept of consumer surplus. 2. Demonstrate graphically and explain verbally the concept of producer surplus. 3. Demonstrate graphically and explain verbally why the equilibrium values of price and quantity in a supply and demand model lead to the maximum combination of consumer and producer surplus. 6. Demonstrate graphically and explain verbally the cost to consumers of a tax of t per carton imposed on the sellers of cigarettes. Where does the lost producer...
when you have MC = 0 & P = a – bQ how to compute consumer surplus, producer surplus and deadweight loss due to their...
when you have MC = 0 & P = a – bQ how to compute consumer surplus, producer surplus and deadweight loss due to their monopoly power?
2 Give two examples of price discrimination. ? How does perfect price discrimination affect consumer surplus,...
2 Give two examples of price discrimination. ? How does perfect price discrimination affect consumer surplus, producer surplus, and total surplus?
Graphically and in words explain the concepts of producer and consumer surplus. a. Given an increase...
Graphically and in words explain the concepts of producer and consumer surplus. a. Given an increase in demand, what happens to total surplus value in society? Show both graphically and in words. b. If government were to impose a tax on the supply side of a perfectly competitive industry, what will happen to surplus value and why will there be a dead weight loss to society assuming no externalities in the market?
3. If we place a price ceiling of $15 do we have a surplus or shortage? By how much? Label producer surplus, consum...
3. If we place a price ceiling of $15 do we have a surplus or shortage? By how much? Label producer surplus, consumer surplus, and dead weight loss. What is the quantity sold? Calculate the area of consumer surplus, producer surplus, and dead weight loss. $60 $40 $20 |
3. If we place a price ceiling of $15 do we have a surplus or shortage? By how much? Label producer surplus, consumer surplus, and dead weight loss. What is the quantity sold? Calculate the area of consumer surplus, producer surplus, and dead weight loss. $60 $40 $20 |
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