Consumer surplus in market for lemon grass

Assignment Help Macroeconomics
Reference no: EM133280204

Question

Assume the market price for lemon grass is $4.00 per pound, but most buyers are willing to pay more than the market price. At the market price of $4.00, the quantity of lemon grass demanded is 1,500 pounds per month, and quantity demanded does not reach zero until the price reaches $30.00 per pound.Construct a graph showing this data, calculate the total consumer surplus in the market for lemon grass, and show the consumer surplus on the graph.

Reference no: EM133280204

Questions Cloud

Explain two factors that influence workers supply of labour : Identify and explain two factors that influence a workers supply of labour. Explain two factors that influence supply of labour
What is the becker-degroot-marschak procedure : What is the Becker-DeGroot-Marschak procedure. Explain how this procedure elicits true willingness to pay?
Graph production function and average product : Graph production function and Average Product. Assume that MAXIMUM number of workers hired is 225 labor units. What will be level of production?
Human behaviour in making choices to satisfy unlimited : Economics is often described as the study of human behaviour in making choices to satisfy unlimited wants from limited resources.
Consumer surplus in market for lemon grass : Calculate the total consumer surplus in the market for lemon grass,and show the consumer surplus on the graph.
Why does economic growth matter : Why does economic growth matter? What does this indicator leave out of its measurement?
What are maximum net benefits you can earn : What are the maximum net benefits you can earn?
Did you pay any federal income tax last year : Do you think it's fair for Amazon (one of the richest companies) to pay $0 federal income tax? Did you pay any Federal Income tax last year?
Distinguish between the short run and the long run : Distinguish between the short run and the long run. What will differentiate the short run and the long run? Describe fixed inputs and variable inputs.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Explain why do you think macro-economics applies

Explain why do you think macro-economics applies to your organization. Give at least two examples of macro-economic actions that could affect your organization.

  Analyze how sales forecast impacts

Analyze how sales forecast impacts all other forecasts for the firm, such as materials, labor, overhead, cash receipts, and disbursements.

  Illustrate how given scenarios affects the home country

Using the IS-LM-FX model, illustrate how each of the following scenarios affects the home country. Compare the outcomes when the home country has a fixed.

  Ives rationale for economy start to recover from recession

Provide a rationale for the economy starts to recover from a severe recession and more people go back to work, government-funded unemployment compensation payments begin to decline.

  Provide the good may utilize the information

Distinguish between a change in demand and a change in the quantity demanded (movement along the demand curve). Propose two methods in which organizations that provide the good may utilize this information.

  South africa experiences major challenges

The public education system in South Africa experiences major challenges. One way of dealing with this problem is for government to privatize education

  Is it an open or closed economy

Identify its comparative advantage and whether it is involved in trade - Identify the country''s type of economy-how its economy is a market, command, or mixed economy.

  Do you think the us should attempt to enforce labor standard

Do you think the United States should attempt to enforce labor standards and environmental standards on its international trading partners? Why or why not?

  1 use the model of supply and demand to explain how a fall

1. use the model of supply and demand to explain how a fall in the price of frozen yogurt would affect the price of ice

  Give an example of a fairly major purchasing decision

Give an example of a fairly major purchasing decision you've made in your lifetime. How did you justify the purchase.

  What is the duration for each five-year bond

An insurance company is analyzing three bonds and is using duration as the measure of interest rate risk. All three bonds trade at a yield to maturity of 10 percent, have $10,000 par values, and have five years to maturity. The bonds differ only in t..

  Difference between inelastic demand and elastic demand

What's the difference between inelastic demand and elastic demand?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd