Consider transaction between two market participants

Assignment Help Business Economics

Reference no: EM131104345

Consider a transaction between two market participants. Suppose Wendy is a buyer who is willing to pay as much as $50 for a concert ticket. Suppose Bruce has a ticket and would like to receive $25 if he decides to sell it. Assuming the market price for this trade is $40, how much is the total market surplus?

Reference no: EM131104345

Questions Cloud

Consumer surplus in the market for red wine : A drought in California destroys many grapes. As a result of the drought, what happens to the consumer surplus in the market for grapes and to the consumer surplus in the market for red wine? Draw the necessary graphs to represent this scenario and t..

Consumer-producer and total surplus at market equilibrium : For this exercise you will need to first build a graph to these specifications: Compute consumer, producer, and total surplus at the market equilibrium. Compute deadweight loss when the government imposes a price ceiling of $120.

Landmark global financial markets event : Explain why the November 1996 Deutsche Telekom issue was a landmark global financial markets event. Discuss: General reasons for privatization and DT’s reasons for it; why DT had to expand the offer outside Germany; why the issue was successful from ..

Calculate the learner index for this monopolist : What would be the monopolist price and quantity? Calculate the profit for the monopolist and the DWL . Calculate the learner index for this monopolist. Now assume that the government imposes a specific tax of $1 per unit. What will happen to price an..

Consider transaction between two market participants : Consider a transaction between two market participants. Suppose Wendy is a buyer who is willing to pay as much as $50 for a concert ticket. Suppose Bruce has a ticket and would like to receive $25 if he decides to sell it. Assuming the market price f..

Disposable income of rich people decrease as result : By how much did the disposable income of rich people decrease as a result of the 2012 hike in the top marginal tax rate from 35 to 39.6 percent? Assume they have $2 trillion of gross income in the highest bracket.

Horizontal merger between two firms with sales : An industry consists of three firms with sales of $200,000, $710,000, and $325,000. a. Calculate the Herfindahl-Hirschman index (HHI). Instruction: Round to the nearest integer. b. Calculate the four-firm concentration ratio (C4). c. Based on the FTC..

But other factors responsible for inequality include : Some part of income inequality is likely to be the result of discrimination. But other factors responsible for inequality include (select as many as apply):

Which country has a more equal distribution of income : Suppose that the United States has a Gini ratio of 0.41 while Sweden has a Gini ratio of 0.31. Which country has a more equal distribution of income?

User Account

All Pages