4. Adie wants to take some online classes this semester. She is willing to pay $

Question

4. Adie wants to take some online classes this semester. She is willing to pay $1,000 for the first class, $800 for the second, $700 for the third, and S500 for the fourth. If online classes cost $750, Adiewl take equa A) three; S350 B) four; S600 C) two; $400 D) two; S300 online classes, and her consumer surplus will Use the following to answer questions: Figure: Market for Hamburgers Price of hamburger $5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 100 200 300 400 600 600 700 800 Quantity of hamburgers (per week) 5. (Figure: The Market for Hamburgers) The figure The Market for Hamburgers shows the weekly market for hamburgers in Irvine, Kentucky. If 400 hamburgers are sold, producer surplus will equal A) S650 B) $400 C) S510 D) S200

Explanation / Answer

5) Producer Surplus : It is the difference between the amount that producers actually receive and the minimum amount that they would have to receive in order to supply the given level of output.

It can be calculated (base*height)/2

So from the graph ((0-400)*(1.5-0.5))/2

= (400*1)/2

= 400/2

= 200

Consumer surplus : It is an economic measure of consumer benefit, which is calculated by analyzing the difference between what consumers are willing to pay for a good or service or what they actually spend on the good or service.

So as per the given question she will take 2 classes for $300.

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