Figune 2 par pound) Supply Quantity (pounds) 40 80 ty of 80. Now The figure show
ID: 1128715 • Letter: F
Question
Figune 2 par pound) Supply Quantity (pounds) 40 80 ty of 80. Now The figure shows the market for tin. The market is initially in equilibrium at a price o suppose producers decide to cut output to 40 in order to raise the price to $18. 5) 5) Refer to Figure 2. What is the value of consumer surplus at a price of $187 6) Refer to Figure 2. What is the value of producer surplus at a price of $18? 7) Refer to Figure 2. What is the value of the deadweight loss at a price of $18? D) $240 A) $60 B) $120 C) $180 6 A) $240 B) $300 C) $340 D) $720 7) A) $100 B) $180 C) S660 D) $1,040 8) 8)is maximized in a competitive market when marginal benefit equals marginal cost. A) Economic surplus Selling price B) Deadweight loss D) Marginal profit 9) The demand and supply for Chef Remy's ratatouille are given by Q4 80-P and 9) Os -2P-100, whereQ is in thousands of units. What are the equilibrium price and quantity for Chef Remy's ratatouille? A) $60 and 20 thousand C) $40 and 50 thousand B) $50 and 100 thousand D) $80 and 80 thousand 10) Consider a situation in which a utility company emits high levels of sulfur dioxide and the 10 company is not liable for the damages its pollution causes. According to the Coase theorem, government action isto achieve an A) necessary; efficient C) not necessary; equitable amount of pollution. B) necessary; equitable D) not necessary; efficientExplanation / Answer
5.
As it can be seen in the diagram when the price is $18, the consumer surplus will be the area above price $18 and below the demand curve.
Hence C.S.=area of triangle
= 1/2*40*(21-18)
=0.5*40*3
=$60
Hence option A is the correct answer.
6.
As it can be seen in the diagram when the price is $18, the Producer surplus will be the area below the price $18 and above the supply curve.
Hence C.S.=area of triangle + area of rectangle between price (18-13) and quantity 40 units.
= 1/2*40*(13-11) + L*B
=0.5*40*2+40*(18-13)
=40+40*5
=$40+200
=$240
Hence option A is the correct answer.
7.
The deadweight loss = area of triangle between price (18-13) and quantity (80-40) units
=1/2*(80-40)*(18-13)
=0.5*40*5
=$100
Hence option A is the correct answer.
8.
In the perfect competition, MB is demand curve and MC is the supply curve. In this case, economic surplus is maximised when demand and supply curve intersect each other.
Hence option A is the correct answer.
# according to Chegg guidelines i have solved first four questions.
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