User Account

All Pages

What is consumer surplus and producer surplus

Assignment Help Macroeconomics
Reference no: EM131186168

What is consumer surplus and producer surplus?

Create a diagram to explain your answer. On the same diagram, show what happens if a limit is imposed on the amount of a good that can be sold in the marketplace (e.g., shortages of rubber due to government controls such as tariffs on imports or import quotas, or due to diseased rubber trees, that result in a limited number of wiper blades for cars), and then explain if the societal combination of the consumer and producer surplus is more or less than if the limit on the quantity had not occurred. Would losses to both producer and consumer surpluses occur? Why or why not?

Hint: You may need to refer to the term deadweight loss or welfare loss triangle in your answer.

Reference no: EM131186168

Questions Cloud

Current global economic conditions : Write a 1,750-word paper (including any material you include from your Week 3 assignment) detailing your findings. The use of tables and/or charts to display economic data over the time period discussed is highly encouraged.
What particular license will you need to pursue : What particular license, certification, or other requirements will you need to pursue the kind of career you envision? What professional organizations govern your specialized field? What questions do you have that you have not yet been able to ans..
What are the most significant problems or challenges : Consider education, training, and the interoperability and compatibility of equipment and personnel - What types of technology do you think are essential to the strategic planning phase of all-hazards planning and response?
Explain films that will serve as the main event for festival : Identify three films that will serve as the main event for the festival. Each film must relate back to the theme. In your justification, use specific scenes, rather than general plot summary, from each movie.
What is consumer surplus and producer surplus : Create a diagram to explain your answer. On the same diagram, show what happens if a limit is imposed on the amount of a good that can be sold in the marketplace (e.g., shortages of rubber due to government controls such as tariffs on imports or i..
Competitive advantage over rival producers : Owning our own source of supply of rapeseed oil insulates us from short-run supply-demand imbalances and therefore will give us a competitive advantage over rival producers." Explain why this argument is wrong.
Production of natural gas impacted the energy market : How has hydraulic fracturing and the increase in U.S. production of natural gas impacted the energy market in the U.S? Use supply and demand graphs to support your answer.
How the application of the theories can impact work practice : Describe your area of specialization. Then select two theorists from the list provided below and describe how the application of their theories can impact your work practices.
Calculate the values of c, s, i : Assume that prior to the increase in G and T that G=1,200 and T=1,200. Calculate the values of C, S, I and r before G and T go up? What happens after the increased spending to C, S, I and r?  What explains the changes in S, I and r

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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