Log in
Economics
1
answer
0
watching
82
views

Consumer surplus measures the value between the price consumers are willing to pay and the:

a. producer surplus price

b. deadweight gain price

c. actual price paid

d. preference price

Watch
1
answer
0
watching
82
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Yusra Anees
Yusra AneesLv10
27 Mar 2021

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

The producer surplus measures the value between the actual selling price and the :

A. Price sellers are willing to sell the product.

B. Deadweight loss price.

C. Lowest price sellers are willing to sell the product.

D. Profit maximization price.

Trade restrictions that lead to higher prices will increase _____________ but decrease ______________.

a. Everyone's level of consumption; unemployment.

b. Foreign exporter enthusiasm; The difference between equilibrium price and what producers must receive in order to make an item available for sale.

c. Consumer Surplus: Producer Surplus.

d. Producer Surplus; Consumer Surplus.

e. The gap between equilibrium price and what consumers are willing to pay; The return to all factors of production in the protected industries.

The market demand function for corn is Qd = 20 - 2P

The market supply function is Qs = 5P - 1

both measured in billions of bushels per year. The initial equilibrium price is $3.00, and the initial equilibrium quantity is 14 billion bushels. Consumer surplus is $49.00, producer surplus is $19.60, and aggregate surplus is $68.60. Suppose the government wants to raise the price of corn to $3.50. What are the welfare effects of a price floor, price support, production quota, and voluntary production reduction program?

Instructions: Round quantities to 1 decimal place and prices to 2 decimal places. State the cost to government in absolute value. Fill in the blank for each of the Program below.

Program 1: A price floor

Amount ($)
Consumer surplus _____ billion
Producer surplus _____ billion
Cost to the government _____ billion
Aggregate surplus _____ billion
Deadweight loss _____ billion


Program 2: A price support

Amount ($)
Consumer surplus _____ billion
Producer surplus _____ billion
Cost to the government _____ billion
Aggregate surplus _____ billion
Deadweight loss _____ billion


Program 3: A production quota

Amount ($)
Consumer surplus _____ billion
Producer surplus _____ billion
Cost to the government _____ billion
Aggregate surplus _____ billion
Deadweight loss _____ billion


Program 4: A voluntary production reduction program

Amount ($)
Consumer surplus _____ billion
Producer surplus _____ billion
Cost to the government _____ billion
Aggregate surplus _____ billion
Deadweight loss _____ billion

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in