To draw: The supply and demand curve diagram to show the influence of decrease in the production cost on the quantity and price of flat screen TVs.

Question

Draw a graph that indicates what happens in the market for hybrid cars when the price of gasoline increases from $2.50 to $5.00 per gallon. Answer the following questions: a) Does equilibrium output rise or fall? b) Does equilibrium price rise or fall? c) Suppose the supply of hybrid cars is perfectly inelastic. Draw a new graph and explain if and how the elasticity of supply changes your answers to parts “a” and “b”. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Answer 1

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 7, Problem 7PA

Subpart (a):

To determine

To draw:The supply and demand curve diagram to show the influence of decrease in the production cost on the quantity and price of flat screen TVs.

Subpart (b):

To determine

The impact of consumer surplus and produce surplus in the supply and demand curve diagram.

Subpart (c):

To determine

Whether producer or consumers of TVs benefits most when the production costs decreases.

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Draw a graph that indicates what happens in the market for hybrid cars when the price of gasoline increases from $2.50 to $5.00 per gallon. Answer the following questions: a) Does equilibrium output rise or fall? b) Does equilibrium price rise or fall? c) Suppose the supply of hybrid cars is perfectly inelastic. Draw a new graph and explain if and how the elasticity of supply changes your answers to parts “a” and “b”. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Please written by computer source Suppose that the demand curve for a product is given by Q = 100 −10p and the supply curve is Q = 10p. Assume that income effects (elasticities) are small so consumer surplus is a good measure of consumer welfare. (a) What is the equilibrium price and quantity with no distortions? (b) The government imposes a tax of $2.00 per unit sold. What is the new equilibrium quantity? Sketch the market equilibrium in a graph. (c) Given the tax what is the change in consumer surplus? What is the change in producer surplus? What is the change in government revenue? What is the net Dead Weight Loss from the tax? (d) Say the government proposes to use the revenue from the tax to pay for snacks in our last ECON 312A lecture. The total social benefits from the snacks would be $82.00. Will the tax increase overall welfare if the revenue is used to buy the snacks? What is the dollar value of the net gain or loss to society?

The value of a price-distorting subsidy for a three-bedroom apartment is $100 per month. This means that the person choosing to live in an apartment of that size would have to pay an extra $100 per month at the market rent. Then it follows that: A.that person would be just as well off if she received a cash subsidy of less than $100 per month. B.that person would be better off if she received a cash subsidy of $100 per month. C.that person would be better off if she received a cash subsidy of $100 per month, or that person would be just as well off if she received a cash subsidy of less than $100 per month D.that person would be worse off if she received a cash subsidy of $100 per month.

Answer 2

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 7, Problem 7PA

Subpart (a):

To determine

To draw:The supply and demand curve diagram to show the influence of decrease in the production cost on the quantity and price of flat screen TVs.

Subpart (b):

To determine

The impact of consumer surplus and produce surplus in the supply and demand curve diagram.

Subpart (c):

To determine

Whether producer or consumers of TVs benefits most when the production costs decreases.

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Answer 3

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 7, Problem 7PA

Subpart (a):

To determine

To draw:The supply and demand curve diagram to show the influence of decrease in the production cost on the quantity and price of flat screen TVs.

Subpart (b):

To determine

The impact of consumer surplus and produce surplus in the supply and demand curve diagram.

Subpart (c):

To determine

Whether producer or consumers of TVs benefits most when the production costs decreases.

Expert Solution & Answer

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Answer 4

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 7, Problem 7PA

Subpart (a):

To determine

To draw:The supply and demand curve diagram to show the influence of decrease in the production cost on the quantity and price of flat screen TVs.

Subpart (b):

To determine

The impact of consumer surplus and produce surplus in the supply and demand curve diagram.

Subpart (c):

To determine

Whether producer or consumers of TVs benefits most when the production costs decreases.

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 7PA

Subpart (a):

To determine

To draw:The supply and demand curve diagram to show the influence of decrease in the production cost on the quantity and price of flat screen TVs.

Subpart (b):

To determine

The impact of consumer surplus and produce surplus in the supply and demand curve diagram.

Subpart (c):

To determine

Whether producer or consumers of TVs benefits most when the production costs decreases.

Answer 6

Chapter 7, Problem 7PA

Subpart (a):

To determine

To draw:The supply and demand curve diagram to show the influence of decrease in the production cost on the quantity and price of flat screen TVs.

Answer 7

Chapter 7, Problem 7PA

Subpart (a):

To determine

To draw:The supply and demand curve diagram to show the influence of decrease in the production cost on the quantity and price of flat screen TVs.

Answer 8

Subpart (b):

To determine

The impact of consumer surplus and produce surplus in the supply and demand curve diagram.

Answer 9

Subpart (b):

To determine

The impact of consumer surplus and produce surplus in the supply and demand curve diagram.

Answer 10

Subpart (c):

To determine

Whether producer or consumers of TVs benefits most when the production costs decreases.

Answer 11

Subpart (c):

To determine

Whether producer or consumers of TVs benefits most when the production costs decreases.

Answer 12

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Answer 13

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Answer 14

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Answer 23

Ch. 7.1 - Prob. 1QQ Ch. 7.2 - Prob. 2QQ Ch. 7.3 - Prob. 3QQ Ch. 7 - Prob. 1CQQ Ch. 7 - Prob. 2CQQ Ch. 7 - Prob. 3CQQ Ch. 7 - Prob. 4CQQ Ch. 7 - Prob. 5CQQ Ch. 7 - Prob. 6CQQ Ch. 7 - Prob. 1QR

To draw: The supply and demand curve diagram to show the influence of decrease in the production cost on the quantity and price of flat screen TVs.

Solution Summary: The author illustrates the supply and demand curve diagram to show the influence of decrease in the production cost on the quantity and price of flat screen TVs.

To draw:The supply and demand curve diagram to show the influence of decrease in the production cost on the quantity and price of flat screen TVs.

The impact of consumer surplus and produce surplus in the supply and demand curve diagram.

Whether producer or consumers of TVs benefits most when the production costs decreases.

Chapter 7 Solutions