Magnitude of total surplus, Microeconomics

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

Posted Date: 4/1/2013 4:05:17 AM | Location : United States







Related Discussions:- Magnitude of total surplus, Assignment Help, Ask Question on Magnitude of total surplus, Get Answer, Expert's Help, Magnitude of total surplus Discussions

Write discussion on Magnitude of total surplus
Your posts are moderated
Related Questions
Q. Explain about Capital Flight? Capital Flight: A destructive process in that investors (both domestic residents and foreigners) withdraw their financial capital from a countr

Individual demand curves for two perfectly competitive market TC1=10q1+1/2q1^2+100 = firm 1 TC2=10q2+q2^2+100

Is it possible for a firm to experience a technological change that would increase the marginal product of labor while leaving the average product of labor unchanged?


Aggregate Demand For Wheat The demand for U.S. wheat is comprised of domestic demand and export demand. The domestic demand for wheat can be given by the equation: -QDD =

Assume that the employer (principle) wants its employee (agent) to work hard [You can safely assume that this maximizes the principle's expected profits from his business]. There a

Draw a Production Possibilities Frontier with consumer goods on the vertical axis and capital goods on the horizontal axis. Show how the PPF will shift if the production of capita

What is Game Theory?  Game Theory is a mathematical method of decision-making in which a competitive situation is examined to verify the optimal course of action for an interes

what are the various types of cost curves?

THEORY OF DEMAND: The  consumer behaviour under indifferencecurve approach where it is assumed that the consumer possesses a utilityfunction. The next most important theory th