Magnitude of total surplus, Microeconomics

Assignment Help:

Answer the following questions based on the graph that represents J.R.'s demand for ribs per week at Judy's Rib Shack.

a.  How high must the price of ribs be for Judy to supply 20 ribs to the market?

b.At the equilibrium price, what is the magnitude of total surplus in the market? Show all the steps.

c. If the price of ribs fell to $5, what would happen to Judy's producer surplus? Explain why. Be precise.

d. Using your words, explain why the graph verifies the fact that the market equilibrium maximizes the sum of producer and consumer surplus.

e. What happens to the quantity consumed in this market if the government imposes a price-ceiling equal to $1? Using words, explain why.

481_Magnitude of total surplus.png


Related Discussions:- Magnitude of total surplus

Demands for the two market are P1=15-, demand for two market are P1=15-Q1&P...

demand for two market are P1=15-Q1&P2=25-Q2.the monopoly TC is C=5+3(Q1+Q2).What are ,output,profit&MR if the monopolist can price disc? riminate

Determine the business cycle and classical economists, Determine the Busine...

Determine the Business Cycle and Classical Economists Business Cycle:   The business cycle is the fluctuations in the rate of economic growth that take place in the economy. Th

Why government cannot print new currency to pay the debts, Why government c...

Why government cannot print new currency to pay the debts?  When there is deficiency of internal resources then government borrow. Government can borrow either from central ban

Economic reforms and reduction of regional disparities, Economic Reforms an...

Economic Reforms and Reduction of Regional Disparities: Another important objective of development is to reduce regional disparities. Government has been helping the backward

Economic planning, How does planning serve as a solution to economic proble...

How does planning serve as a solution to economic problems?

Discuss about modern economic growth, Discuss about Modern economic growth ...

Discuss about Modern economic growth Modern economic growth is also a shift in the kinds of things we do at work and play and in the way we live. Back in immediate aftermath of

Market structures, illustrate and discuss the implications of various marke...

illustrate and discuss the implications of various market structures (competitive and non competitive) for price determination

Traditional food processing methods, discuss african traditional methods of...

discuss african traditional methods of production and processing of food

Determination of exchange rates, DETERMINATION OF EXCHANGE RATES: When...

DETERMINATION OF EXCHANGE RATES: When we study the determinants of exchange rates, we must distinguish between long run determinants and short run because the determinants in

Types of privatisation of the economy, Privatisation in the narrow sense ca...

Privatisation in the narrow sense can take several forms: a) Total Denationalisation: This implies complete transfer of ownership of apublic enterprise to private hands. Some

Write Your Message!

Captcha
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