Magnitude of total surplus, Microeconomics

Assignment Help:

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


Related Discussions:- Magnitude of total surplus

Causes of slow growth - structure of national income, CAUSES OF SLOW GROWTH...

CAUSES OF SLOW GROWTH: A recent empirical study seeks to explain statistically the variations in inter-country growth rates. The global pattern of growth is shown to depend on

Political economy, #question.Now suppose nation A has RA resources in its t...

#question.Now suppose nation A has RA resources in its treasury and nation B has RB resources. The winning coalition in each nation is WA and WB respectively. Leaders want to survi

What do you meant by investment, Q. What do you meant by Investment? In...

Q. What do you meant by Investment? Investment: Investment represents production which isn't consumed though rather is utilized in the production of other additional output. In

Price control, an explanation of the meaning of price ceiling

an explanation of the meaning of price ceiling

Unemployment, Unemployment: Unemployment refers to a situation where p...

Unemployment: Unemployment refers to a situation where people who are willing and able to work do not find jobs at the existing wage rate.For a person to be referred to as une

Demand and supply considerations of education, Normal 0 false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Economics Concepts, Suppose taht two people, Michell andJames each live alo...

Suppose taht two people, Michell andJames each live alone in an isolated region. They each have the same resources available, and they grow potatoes and raise chickens. If Michelle

Explain advantage and comparative advantage differ, 1. Explain how abs...

1. Explain how absolute advantage and comparative advantage differ? 2. Give an example in which a person has an absolute advantage in doing some thing but another pers

Write Your Message!

Captcha
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