Quadrilateral drawing tool to shade are of producer surplus

Assignment Help Business Economics
Reference no: EM131172284

148_media_86c_86c68e06-96f5-46f4-8eef-49fc715ca3f7_phpP3ZYtE.png

Consider the market for pizza in a small college town with multiple pizzerias. Initially supply and demand are given by S1 and D, such that equilibrium is at E1. A number of pizzerias close, reducing supply. First, use the double drop line drawing tool to label the new equilibrium E2. Due to the price increase some surplus that was going to consumers now goes to the remaining producers. Use the quadrilateral drawing tool to shade this region, labeling it "Transferred". Due to the decline in supply, there is lost consumer and producer surplus that was received prior to the supply decline. Use the triangle drawing tool to shade the area of consumer surplus that was previously earned that is lost. Label it LostCS. Likewise, use the quadrilateral drawing tool to shade the are of producer surplus that was previously earned that is now lost. Label it LostPS.

Reference no: EM131172284

Questions Cloud

Easy to assign and transactions costs are particular low : if property rights are easy to assign and transactions costs are particular low, then
Makes the argument that taxation is akin to forced labor : Philosopher Robert Nozick makes the argument that taxation is akin to forced labor. If a person is required to work for the benefit of others against his or her will, then Nozick suggests the labor is forced. By imposing taxation on people, the U.S. ..
Benefits of eating six-ounce portions of wild salmon : Suppose credible medical reports reveal previously unknown benefits of eating six-ounce portions of wild salmon, three times per week. These benefits include a significantly extended life span, improved health, a keener mind, and more dates. Use comp..
Ranges of effective rate of return will purchaser receive : A 10-year, 11.00%, $1,000 bond that pays dividends quarterly can be purchased for $920. This means that $920 is spent on the bond now. Every quarter, $27.50 is provided to the purchaser as the dividend. After 10 years, $1,000 is given to the purchase..
Quadrilateral drawing tool to shade are of producer surplus : Consider the market for pizza in a small college town with multiple pizzerias. Initially supply and demand are given by S1 and D, such that equilibrium is at E1. A number of pizzerias close, reducing supply. use the quadrilateral drawing tool to shad..
Calculate the elasticity of supply : The Mag Transit owners see the change in profits from the price decrease in May and the projection for June. They decide to go back to a price of $10.00 and have 31,000 deliveries in June. Calculate the Elasticity of Supply. Is it elastic or inelasti..
Derive the long run demands for capital and labor : A firm has a production function given by Q=10K^0.25L^0.25. Suppose that each unit of capital costs R and each unit of labor costs W. Derive the long run demands for capital and labor. Derive the total cost curve for this firm. Derive the long-run av..
Discuss the minipublics-types of institutional design : Discuss the minipublics (types of institutional design) presented by Archon Fung. Which one(s), in your view, provide the best avenues for deliberation and civic participation on the part of the citizens and the institutions of governance?
Suppose that the price of gasoline at particular station : Suppose that the price of gasoline at a particular station two months ago was $2.80 per gallon (keep it simple—assume one grade of gas). The past month, the price of gas was $3.10 per gallon. Assuming 20,100 gallons were sold two months ago and 20,00..

Reviews

Write a Review

Business Economics Questions & Answers

  Bond is more risky than the five percent bond

Gina has the choice of two bonds, one that pays 5 percent interest and the other that pays 10 percent interest. Which of the following is most likely?

  Described in terms of normative and positive economics

For the sake of argument (and this assignment) assume that global warming is a fact, caused by human activity, and that it can be fixed by taxing producers for the amount of carbon they release. The problem is that this tax would greatly increase cos..

  Growth rate in the money supply

The Quantity Equation MV = PY can be expressed as follows: (Growth Rate in the Money Supply) + (Percentage Change in Velocity) = (Inflation Rate) + (Growth Rate of Real GDP) Given this fact, suppose money velocity falls by 50% because individuals and..

  List the four dimensions of opportunity management

List the four dimensions of opportunity management. How would you describe your time management skills? List the four time-saving techniques used by time-conscious people and describe how you can use each to increase your time management.

  Find the subgame perfect equilibrium

Consider the following game. A firm currently on the market (incumbent firm) faces the potential entry of one firm (the entrant). If the incumbent remains alone on the market, his profit is 1000. The incumbent can try to convince the entrant to do no..

  Case study - technology and economic change getting the

case study - technology and economic change getting the benefits fromtasks to be undertakenbull read chapter 13 in

  Which currency euro or the yen would you consider riskier

Suppose the dollar exchange rates of the euro and the yen are equally variable. Which currency, the euro or the yen, would you consider riskier.

  Reserves-required reserves and excess reserves

Suppose that Best National Bank currently has $50,000 in demand deposits and $32,500 in outstanding loans. The Federal Reserve has set the reserve requirement at 10%. Reserves? Required Reserves? Excess Reserves?

  Own-price elasticity of demand

Given that the own-price elasticity of demand for shirts is -0.5, if the price of shirts decreases by 10%, what will happen to the quantity demanded of shirts?

  The long run market equilibrium price also output

Illustrate what will be the long run market equilibrium price also output. Elucidate how many mills of Illustrate what type - new or old - will survive.

  Decided to change how she compensated her top manager

Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $55,000 and her store made $115,000 in profits (not counting payment to her top manager). She suspected t..

  Explain the economic meaning of the residual

In the country of Growlandia the labor force grows by 3% per annum, while the capital stock grows by 4% per annum. Suppose 40% of national income goes to labor. Suppose the country’s actual rate of growth is 5% per annum. Calculate the value of the r..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd