Help me with these? Thanks. Suppose you search for a used bicycle online, and ar
ID: 1228285 • Letter: H
Question
Help me with these? Thanks.Suppose you search for a used bicycle online, and are willing to pay at most $100. You successfully find one for sale for $80. What is the value of consumer surplus? a) $20 b) $80 c) $100 d) $180
Miranda and Jason are in the tutoring business. Miranda is willing to tutor as long as she gets $20, while Jason won’t tutor unless he gets $35. If the most that someone would pay for tutoring is $30, how much producer surplus is earned? a) Miranda = $10; Jason = -$5 b) Miranda = $20; Jason = -$5 c) Miranda = $10; Jason = $0 d) Miranda = $20; Jason =$0
Carolina is trying to sell her car; the lowest amount she is willing to accept is $2,000. Abdul is interested in buying the car, and although he’s willing to pay $2,500, he negotiates a price of $2,100. How much consumer surplus does Abdul achieve, and what is total surplus? a) consumer surplus = $100; total surplus = $2,100 b) consumer surplus = $400; total surplus = $2,100 c) consumer surplus = $100; total surplus = $500 d) consumer surplus = $400; total surplus = $500
If Avery is willing to pay $10 for a pizza, Pia is willing to pay $13, and Sylvio is willing to pay $15, how much consumer surplus is achieved when the price of pizza is $12? a) $2 b) $4 c) $6 d) $10
Grapes are an input in the production of wine, and wine and red meat are complements. A decrease in the price of grapes will _________ the total surplus in the market for red meat.
a) increase b) decrease c) not change
Help me with these? Thanks.
Suppose you search for a used bicycle online, and are willing to pay at most $100. You successfully find one for sale for $80. What is the value of consumer surplus? a) $20 b) $80 c) $100 d) $180
Miranda and Jason are in the tutoring business. Miranda is willing to tutor as long as she gets $20, while Jason won’t tutor unless he gets $35. If the most that someone would pay for tutoring is $30, how much producer surplus is earned? a) Miranda = $10; Jason = -$5 b) Miranda = $20; Jason = -$5 c) Miranda = $10; Jason = $0 d) Miranda = $20; Jason =$0
Carolina is trying to sell her car; the lowest amount she is willing to accept is $2,000. Abdul is interested in buying the car, and although he’s willing to pay $2,500, he negotiates a price of $2,100. How much consumer surplus does Abdul achieve, and what is total surplus? a) consumer surplus = $100; total surplus = $2,100 b) consumer surplus = $400; total surplus = $2,100 c) consumer surplus = $100; total surplus = $500 d) consumer surplus = $400; total surplus = $500
If Avery is willing to pay $10 for a pizza, Pia is willing to pay $13, and Sylvio is willing to pay $15, how much consumer surplus is achieved when the price of pizza is $12? a) $2 b) $4 c) $6 d) $10
Grapes are an input in the production of wine, and wine and red meat are complements. A decrease in the price of grapes will _________ the total surplus in the market for red meat.
a) increase b) decrease c) not change
Help me with these? Thanks.
Suppose you search for a used bicycle online, and are willing to pay at most $100. You successfully find one for sale for $80. What is the value of consumer surplus? a) $20 b) $80 c) $100 d) $180
Miranda and Jason are in the tutoring business. Miranda is willing to tutor as long as she gets $20, while Jason won’t tutor unless he gets $35. If the most that someone would pay for tutoring is $30, how much producer surplus is earned? a) Miranda = $10; Jason = -$5 b) Miranda = $20; Jason = -$5 c) Miranda = $10; Jason = $0 d) Miranda = $20; Jason =$0 Miranda and Jason are in the tutoring business. Miranda is willing to tutor as long as she gets $20, while Jason won’t tutor unless he gets $35. If the most that someone would pay for tutoring is $30, how much producer surplus is earned? a) Miranda = $10; Jason = -$5 b) Miranda = $20; Jason = -$5 c) Miranda = $10; Jason = $0 d) Miranda = $20; Jason =$0
Carolina is trying to sell her car; the lowest amount she is willing to accept is $2,000. Abdul is interested in buying the car, and although he’s willing to pay $2,500, he negotiates a price of $2,100. How much consumer surplus does Abdul achieve, and what is total surplus? a) consumer surplus = $100; total surplus = $2,100 b) consumer surplus = $400; total surplus = $2,100 c) consumer surplus = $100; total surplus = $500 d) consumer surplus = $400; total surplus = $500 Carolina is trying to sell her car; the lowest amount she is willing to accept is $2,000. Abdul is interested in buying the car, and although he’s willing to pay $2,500, he negotiates a price of $2,100. How much consumer surplus does Abdul achieve, and what is total surplus? a) consumer surplus = $100; total surplus = $2,100 b) consumer surplus = $400; total surplus = $2,100 c) consumer surplus = $100; total surplus = $500 d) consumer surplus = $400; total surplus = $500
If Avery is willing to pay $10 for a pizza, Pia is willing to pay $13, and Sylvio is willing to pay $15, how much consumer surplus is achieved when the price of pizza is $12? a) $2 b) $4 c) $6 d) $10
If Avery is willing to pay $10 for a pizza, Pia is willing to pay $13, and Sylvio is willing to pay $15, how much consumer surplus is achieved when the price of pizza is $12? a) $2 b) $4 c) $6 d) $10
Grapes are an input in the production of wine, and wine and red meat are complements. A decrease in the price of grapes will _________ the total surplus in the market for red meat.
a) increase b) decrease c) not change Grapes are an input in the production of wine, and wine and red meat are complements. A decrease in the price of grapes will _________ the total surplus in the market for red meat.
a) increase b) decrease c) not change
Explanation / Answer
Solution-
1. The correct option is A. $20
Reason-
Consumer Surplus = Willingness to pay - Price
= 100 - 20
= 80
2. The correct option is C. Miranda = $10; Jason = $0
Reason-
Miranda = 30 - 20 = 10
Jason = 30 - 35 = - 5
Jason is in loss hence producer surplus of Jason is 0
3. The correct option is D. Consumer surplus = $400; total surplus = $500
Reason-
Consumer Surplus = 2500 - 2100 = 400
Producer surplus = 2100 - 2000 = 100
Total surplus = Consumer surplus + Producer surplus
= 400 + 100
= 500
4. The correct option is B. $4
Reason-
Pia = 13 - 12 = 1
Sylvio = 15 - 12 = 3
CS = 1 + 3 = 4
5. The correct option is A. Increase.
Reason-
A complementary good is a good with a negative cross elasticity of demand. It means a good's demand is increased when the price of another good is decreased. However, the demand for a good is decreased when the price of another good is increased.
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