Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $4.25. Michelle was willing to pay up to $7.25 for the cappuccino, and Paul's Cafe and Bakery was willing to accept $1.75 for the cappuccino. Based on this information, answer the following questions. Michelle's consumer surplus: $ Paul's Cafe and Bakery's producer surplus: $

Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $4.25. Michelle was willing to pay up to $7.25 for the cappuccino, and Paul's Cafe and Bakery was willing to accept $1.75 for the cappuccino. Based on this information, answer the following questions. Michelle's consumer surplus: $ Paul's Cafe and Bakery's producer surplus: $

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 2P

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Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $6.25. Michelle was willing to pay up to $7.25 for the cappuccino and Paul's Cafe and Bakery was willing to accept $1.25 for the cappuccino. Based on this information, answer the questions Michelle's consumer surplus: $ Paul's Cafe and Bakery's producer surplus: $
The graph shows the demand curve for textbooks. Suppose the price of a textbook is $150. Draw an arrow that shows the consumer surplus on the 1 millionth textbook bought. Consumer surplus is O A. equal to the amount that we pay for a good or service O B. greater on the 100th unit of a good that we buy than on the 1st unit of a good that we buy O C. the value that we receive by purchasing a good or service O D. measured as the marginal benefit (or value) of a good minus the price paid for it, summed over the quantity bought 250- 200- 150- 100- 50- 0- Price (dollars per textbook) Market price D = MSB o 2 3 5 Quantity (millions of textbooks per year) >>> Draw only the objects specified in the question. Q
c. Suppose the demand for French bread rises. Illustrate and briefly explainwhat happen to producer surplus in the market for French bread and itseffects on the price of French bread. d. Take note that the French bread is using flour as its main ingredient. Withthat, illustrate and explain what happens to producer surplus in the marketfor flour and the effect in the price of flour.
It is a hot day and Bert is thirsty. Here is the value he places on a bottle of water: Bottle of Water Value Value of first bottle $7 Value of second bottle $5 Value of third bottle $3 Value of fourth bottle $1 From this information, derive Bert’s demand schedule. Graph his demand curve for bottled water. If the price of a bottle of water is $4, how many bottles does Bert buy? How much consumer surplus does Bert get from his purchases? Show Bert’s consumer surplus in your graph. If the price falls to $2, how does quantity demand change? How does Bert’s consumer surplus change? Show these changes in your graph.
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Suppose the demand for French bread rises. Explain what happens to producer surplus inthe market for French bread. Explain what happens to producer surplus in the market forflour. Illustrate your answers with diagrams.It is a hot day, and Bert is thirsty. Here is the value he places on each bottle of water:Value of first bottle $7Value of second bottle $5Value of third bottle $3Value of fourth bottle $1a. From this information, derive Bert’s demand schedule. Graph his demand curve for bottledwater.b. If the price of a bottle of water is $4, how many bottles does Bert buy? How muchconsumer surplus does Bert get from his purchases? Show Bert’s consumer surplus in yourgraph.c. If the price falls to $2, how does quantity demanded change? How does Bert’s consumersurplus change? Show these changes in your graph.
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The graph below depicts Jacques's monthly demand for tuna. Suppose the price of tuna falls from $12 per pound to $8 per pound. On the diagram, use the area drawing tool to box in the changein Jacques's consumer surplus. To refer to the graphing tutorial for this question type, please click here. Jacques's Monthly Demand for Tuna Price per pound 16 15 14 13 12 11 10 9 7 4 3 2 1 るるる + SUBMIT ANSWER 4 VIEW SOLUTION 7 OF 14 QUESTIONS COMPLETED MacBook Pro