price is P1 and the equilibrium quantity is Q1. Consumer surplus is area A and producer surplus is area B + C‚ so total surplus is A + B + C. Figure 3 2. b. When the U.S. orange market is opened to trade‚ the new equilibrium price is PW‚ the quantity consumed is QD‚ the quantity produced domestically is QS‚ and the quantity imported is QD – QS. Consumer surplus increases from A to A + B + D + E. Producer surplus decreases from B + C to C. Total surplus changes from A + B + C to A + B + C + D + E
Premium International trade Supply and demand
Welfare‚ Consumer‚ Producer and Total Surplus Use the graph below to answer the next few questions: Assume that the graph shows a perfectly competitive market. What is the consumer surplus? F+B+E Assume that the graph shows a perfectly competitive market. What is the producer surplus? A+C+D Assume that the graph shows a perfectly competitive market. What is the total surplus? A+C+D+F+B+E Now assume that a monopoly is the sole supplier to the market. How does that change the surplus measures
Premium Economics Supply and demand Microeconomics
Market Research Reports‚ MarketReportsStore.com publishes report on “Consumer Trends Analysis: Understanding Consumer Trends and Drivers of Behavior in the Brazilian Savory Snacks Food Market”. Summary Understanding Consumer Trends and Drivers of Behavior in the Brazilian Savory Snacks Food Market provides an overview of the market‚ analyzing market data‚ demographic consumption patterns within the category‚ and the key consumer trends driving consumption. The report highlights innovative new product
Premium Marketing Consumer protection Marketing research
Marketing Management‚ 14e (Kotler/Keller) Chapter 6 Analyzing Consumer Markets 1) ________ is the study of how individuals‚ groups‚ and organizations select‚ buy‚ use‚ and dispose of goods‚ services‚ ideas‚ or experiences to satisfy their needs and wants. A) Target marketing B) Mind mapping C) Consumer activism D) Consumer behavior E) Product differentiation Answer: D Page Ref: 151 Objective: 1 Difficulty: Easy 2) Which of the following would be the best illustration of a subculture
Premium Brand Memory Attitude change
price for a natural monopoly to charge? Why will a natural monopoly that attempts to charge the socially optimal price invariably suffer an economic loss? Answer: The socially desirable price to charge is the one at which the marginal benefit to consumers equals the marginal cost of production. However‚ natural monopolies usually have very large fixed costs and relatively low marginal costs. The high fixed costs mean that average cost is greater than marginal cost‚ so that charging a price equal to
Premium Costs Marginal cost Microeconomics
Selected Answer: €16 Correct Answer: €16 Question 3 0 out of 1 points The difference between the price of a good and the marginal cost of that good is called Selected Answer: profit Correct Answer: producer surplus Question 4 1 out of 1 points To increase output from 33 to 66 units requires ______ extra employee-hours; to increase output from 66 to 99 units requires _____ extra employee-hours. Selected Answer: 1;2 Correct Answer:
Premium Supply and demand Microeconomics Price elasticity of demand
Raggs‚ Ltd.‚ a clothing firm‚ determines that the marginal profit and marginal cost are given by ‚ . Find the total revenue if R(0) = 3000. 1‚ The distance profit is given by the definiteinte gral of (P’(x)) Px=P’x=150-0.5xdx =150x-0.25x2+CThe distance cost is given by the definiteinte gral of (C’(x)) Cx=C’x=4000+0.25x2dx =4000x-112x3+CWe have the total revenue is R(x) = P(x) + C(x) Cx=150x-0.25x2+C+4000x+112x3+C =112x3-0
Premium Profit maximization Microeconomics Marginal cost
University of XXXBUS 500B Fall 2014 Homework 2.2 Due Date: Sunday 09/28 Instructor: KittiTrade 1. Nation A’s production in 1 day Nation B’s production in 1 day Computers 100 Software 140 Computers 120 Software 150 Two nations can produce computers and software in the amounts given in the table above. Using the same amount of resources to produce two goods. Draw PPF curve and explain the reason of each question. a. Does either nation have an absolute advantage in producing
Premium Economics International trade Marginal cost
it would naturally be so buyers want a lot of the product. But sellers can’t make as much money so they don’t want to sell the product. This can make it harder for buyers to get any of the products they want. Sellers produce more products than consumers want to buy at prices that will allow the seller to make a
Premium Pricing Marketing Supply and demand
to maximize best value for money by obtaining surplus value. Surplus value is different from the value. Surplus value locates between cost of production for supplier and value of the product to the buyer. This is called the area zone of agreement. The surplus value which is retained by supplier is called producer surplus and the value which is retained by buyer is called consumer surplus‚ the procurement team/department aim to maximize consumer surplus. Purchasing process means that demand management
Premium Supply chain management Procurement Logistics