Look at Tables 4.1 and 4.2 together. What is the total surplus if Bob buys a unit
Question:
Look at Tables 4.1 and 4.2 together. What is the total surplus if Bob buys a unit from Carlos? If Barb buys a unit from Courtney? If Bob buys a unit from Chad? If you match up pairs of buyers and sellers so as to maximize the total surplus of all transactions, what is the largest total surplus that can be achieved?
TABLE 4.1 Consumer Surplus
TABLE 4.2 Producer Surplus
Transcribed Image Text:
(2) (3) Maximum Actual Price (4) Price Willing to Pay (1) (Equilibrlum Price) Consumer Person Surplus $5 (= $13 – $8) $13 $8 Bob Barb 4 (= $12 – $8) 12 3 (= $11 – $8) 2(= $10 – $8) Bill 11 Bart 10 1 (= $ 9- $8) 0(= $ 8- $8) Brent Betty 00 00 00 00 00 (2) (3) Minimum Actual Price (4) (1) Person Acceptable Price (Equilibrium Price) Consumer Surplus $5 (= $8 – $3) 4 (= $8 – $4) Carlos $3 $8 Courtney 4 3 (= $8 – $5) 2 (= $8 – $6) Chuck Cindy Craig 1 (= $8 – $7) Chad 0(= $8 – $8) 00 00 00
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (13 reviews)
10 13 3 8 12 4 5 13 8 30 Consider the following tables as an example If Bob buys a unit of the good ...View the full answer
Answered By
HILLARY KIYAYI
I am a multi-skilled, reliable & talented Market analysis & Research Writer with a proven ability to produce Scholarly Papers, Reports, Research and Article Writing and much more. My ultimate quality is my English writing/verbal skill. That skill has proven to be the most valuable asset for project writing, Academic & Research writing, Proofreading, HR Management Writing, business, sales, and a variety of other opportunities.
4.80+
24+ Reviews
60+ Question Solved
Related Book For
Microeconomics Principles, Problems and Policies
ISBN: 978-1259450242
20th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
Question Posted:
Students also viewed these Business questions
-
The U.S. Department of Agriculture (USDA) administers the price floor for butter, which the 2008 Farm Bill set at $1.05 per pound. At that price, according to data from the USDA, the quantity of...
-
The accompanying table shows six consumers willingness to pay (his or her individual marginal benefit) for one MP3 file copy of a Jay-Z album. The marginal cost of making the file accessible to one...
-
Pollution that increases firm costs-Policy Solutions: This exercise continues to build on exercises 21.9 and 21.10. Assume the same basic setup of firms located around a lake producing pollution that...
-
Why is an investment portfolio containing a mix of stocks and bonds less risky than one containing a single asset class? Because the markets for stocks and bonds tend to move in the same direction at...
-
A normally consolidated clay has a ' of 30o. Two identical specimens of this clay are consolidated to 200 kPa in a triaxial cell. Predict the maximum and minimum possible axial stresses in the...
-
What are recombinant chromosomes? How do they differ from the original parental chromosomes from which they are derived?
-
Using the sample project from this chapter, perform a sensitivity analysis (+/-10 basis-points) of r's effect on IRR, starting from its base value for this project of 9.40 percent. Which of the...
-
Politan Company acquired an 80 percent interest in Soludan Company on January 1, 2010. Any portion of Soludans business fair value in excess of its corresponding book value was assigned to...
-
The importance of reporting income from continuing operation and discontinued operation separately are the following except; Select one: a. Allows users to identify relavant information on the...
-
Re-write the C code below using ATMega32 assembly: unsigned char i, sum = 0; for( i=0; i<10; i++ ) { if( i < 5 ) sum + = 2; else sum = 1; }
-
Consider the following two isomers of 2,4-hexadiene. One isomer reacts rapidly as a diene in a Diels-Alder reaction, and the other does not. Identify which isomer is more reactive, and explain your...
-
Rank the following dienes in terms of reactivity in Diels- Alder reactions (from least reactive to most reactive):
-
1. Why did the plaintiff win this case on appeal? 2. Michigan law bars liability in these situations if the risk is or should be a matter of common knowledge to persons in the same or similar...
-
Consider a soil-mantled hillslopes with a relative gentle steepness (landsliding does not occur). Rates of erosion and deposition on the hillslope are more closely related to? Choose just one slope...
-
A balloon is filled with air and then tied via a string to the bottom of a tank of water, fully sub- merged as shown in the figure. If the temperature of the water increases, which of the follow- ing...
-
Scholars and popular culture continuously debate the reasons why people went on Crusade. Some argue that the Crusades were nothing more than an attempt to steal land and wealth from Muslims, and they...
-
Describe how interrelationships between culture and climate impact a sergeant major in developing an organization vision?
-
What can an educational administrator do to affect the culture for change (readiness for change) in an educational institution? What are the criteria or characteristics of an organization that can be...
-
Suppose A and B are two events such that P(A) = 0.3, P(B) = 0.4, and P(A B) = 0.12. Are events A and B independent? Justify your answer.
-
The Taylor's series expansion for cosx about x = 0 is given by: where x is in radians. Write a user-defined function that determines cosx using Taylor's series expansion. For function name and...
-
Refer to the payoff matrix in question 8 at the end of this chapter. First, assume this is a one-time game. Explain how the $60/$57 outcome might be achieved through a credible threat. Next, assume...
-
Refer to the payoff matrix below Assuming this is a sequential game with no collusion, what is the outcome if Firm A moves first to build a new type of commercial aircraft? Explain why first-mover...
-
Refer to the payoff matrix below Assuming this is a sequential game with no collusion, what is the outcome if Firm A moves first to build a new type of commercial aircraft? Explain why first-mover...
-
Zhang Company, an IFRS company sold $8.000.000 of 6% 3-year bonds on January 1, 2016 The bonds pay interest each December 31 cost the company $30,000 in bonde costs The bonds weld at par What the...
-
Required information Benchmark Assignment-Coca-Cola Co. & Pepsico Inc. You will need to use the data below from the two companies to calculate problems and answer the following questions: Coca-Cola...
-
Summer Corporation board of directors have approved payment of a cash dividend of $2.00 per share. The dividend was declared on November 1, 2020 for all stockholders' of record as of December 1,...
Study smarter with the SolutionInn App