What is the dollar value of the total surplus

Assignment Help Business Economics
Reference no: EM131164485

Given the following diagrams: Q1 = 16 bags. Q2 = 11 bags. Q3 = 23 bags. The market equilibrium price is $37 per bag. The price at point a is $85 per bag. The price at point c is $5 per bag. The price at point d is $52 per bag. The price at point e is $27 per bag. The price at point f is $51 per bag. The price at point g is $16 per bag. Apply the formula for the area of a triangle (Area = ½ × Base × Height) to answer the following questions

a. What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output level Q1 is being produced? $.

How large is the dollar value of the consumer surplus at the output level Q1? $.

b. What is the dollar value of the deadweight loss when output level Q2 is being produced? $.

What is the total surplus when output level Q2 is being produced? $.

c. What is the dollar value of the deadweight loss when output level Q3 is produced? $.

What is the dollar value of the total surplus when output level Q3 is produced? $

Reference no: EM131164485

Questions Cloud

Labor is the mobile factor implying that labor : Suppose Home economy produces 2 goods, Food and Cloth, using labor, land, and capital. Land is specific to the Food sector and capital is specific to the Cloth sector. Labor is the mobile factor implying that labor and land are used to produce Food; ..
Energy prices and american aggregate supply from fracking : Understand the impact on the US Aggregate Supply from a higher supply of energy and the lower energy prices that follow an increase in the supply of energy. Since energy is an input into most all production and transportation, changes in energy price..
What happens to the value of your bond : Show your math to receive credit: Suppose that you have just bought a four-year $10,000 coupon bond with a coupon rate of 7% when the market interest rate is 7%. Immediately after you buy the bond, the market interest rate falls to 5%. What happens t..
What is the dollar value of the total surplus : Given the following diagrams: Q1 = 16 bags. Q2 = 11 bags. Q3 = 23 bags. The market equilibrium price is $37 per bag. The price at point a is $85 per bag. The price at point c is $5 per bag. The price at point d is $52 per bag. The price at point e is..
Current issues surrounding social security-current policy : Current issues surrounding social security and the current policy being implemented in relationship to its impact on public finance. Also include any possible new policy discussions surrounding the topic that are related to public finance.
Nominal gdp targeting differ from real gdp targeting : How does nominal GDP targeting differ from real GDP targeting? Why is real GDP targeting the riskier of the two strategies? Currently, no major central bank closely targets the money supply. Why do you think this is the case? Still, no major central ..
Essay on the role of automatic stabilizers : Write a two-page essay on the role of automatic stabilizers. In your essay include comments on the following points: What are automatic fiscal stabilizers? How do these stabilizers stabilize real GDP in the face of AD and AS shocks?What is the role o..
Three different methods of allocating scarce resources : Describe three different methods of allocating scarce resources. Explain how these allocation methods may affect quantity demanded, equilibrium price, and quantity supplied. Are these allocation methods more or less efficient than other methods?

Reviews

Write a Review

Business Economics Questions & Answers

  Constant debt equity ratio maintained

The expansion will cost $60 million and will be financed with $40 million in new debt initially with a constant debt equity ratio maintained thereafter.

  Illustrate what has happened in the market for your good

Illustrate what has happened in the market for your good or service in the curve you labeled D1. What happened to the equilibrium price.

  Determine the after-tax cash flows for this investment

Determine the after-tax cash flows for this investment. make adjustment in the DDB depreciation charges if necessary in any year in light of the SV of $20k

  Open market purchase or sale of securities

How great an open market purchase or sale of securities should the central bank undertake to restore the original interest rate.

  What was percentage change in per capita real gdp

In 2016, a nation's population was 10 million, its real GDP was $1.21 billion, and its GDP deflator had a value of 121. By 2017, its population had increased to 12 million, its real GDP had risen to $1.5 billion, and its GDP deflator had a value of 1..

  What price does the monopoly sell its good in each country

A monopoly sells its good in the United States, where the elasticity of demand is -2, and in Japan, where the elasticity of demand is -5. Its marginal cost is $10. At what price does the monopoly sell its good in each country if resale is impossible?

  Assuming other things equal-according to the law of demand

Assuming other things equal, according to the law of demand

  What is the real interest rate

In the country of Wiknam, the velocity of money is constant. Real GDP grows by 3% per year, the money stock grows by 8% per year, and the nominal interest rate is 9%. What is the growth rate of nominal GDP? the inflation rate? the real interest rate?

  Economies of scale and diseconomies of scale

Indicate whether there will be economies of scale, diseconomies of scale, or constant returns to scale if the facilities are built optimally.

  How to swim freestyle while keeping their hips raised

Swim coach Rob teaches athletes how to swim freestyle while keeping their hips raised. Let q represent the number of swimmers that learn the technique, and let h represent the number of hours of individual training Rob provides in which the swimmers ..

  Accurate measure of economys production than nominal GDP

Real versus, nominal GDP Consider a simple economy that produces two goods: apples and envelopes. The following table shows the prices and quantities for the goods over a three-year period. The inflation rate in 2010 was. Why is real GDP a more accur..

  What was her estimate for the marginal propensity to consume

In 2009, the Chair of the President's Council of Economic Advisors Christina Romer delivered a report outlining the expected impact of the American Recovery and Reinvestment Act. Her research suggested that the fiscal multiplier for increased governm..

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