How does voluntary trade generate both consumer and producer surplus?
Question:
How does voluntary trade generate both consumer and producer surplus?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 87% (8 reviews)
Voluntary trade generates consumer surplus because a rati...View the full answer
Answered By
Nyron Beeput
I am an active educator and professional tutor with substantial experience in Biology and General Science. The past two years I have been tutoring online intensively with high school and college students. I have been teaching for four years and this experience has helped me to hone skills such as patience, dedication and flexibility. I work at the pace of my students and ensure that they understand.
My method of using real life examples that my students can relate to has helped them grasp concepts more readily. I also help students learn how to apply their knowledge and they appreciate that very much.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
What happens to consumer and producer surplus when the sale of a good is taxed? How does the change in consumer and producer surplus compare to the tax revenue? Explain.
-
Using Figure, show the effect on consumer and producer surplus of the sugar import quota (relative to free trade). Also show the changes in consumer and producer surplus in RoW.
-
Total consumer and producer surplus is maximized under perfect competition. If government restricted the quantity that could be brought to market, how would this restriction affect price, quantity,...
-
1. If net profit is $47,025; depreciation is $2,200; accounts receivable increases $5,056; accounts payable increases $4,673; and inventory declines $850; what is the operating cash flow for the...
-
Discuss the statement Quality is the responsibility of the quality department.
-
You have set up your tax preparation firm as an incorporated business. You took $80,000 from the firm as your salary. The firm?s taxable income for the year (net of your salary) was $30,000. Assume...
-
At present, 10-year Treasury bonds are yielding 5 percent, while a 10-year corporate bond is yielding 7 percent. If the liquidity-risk premium on the corporate bond is 0.5 percent, what is the...
-
It is important in accounting theory to be able to distinguish the types of accounting changes. Required 1. If a public company desires to change from the sum-of the- years-digits depreciation method...
-
16. A signal containing multiple frequencies is shown in figure A. It is passed through 2 different filters and then outputs are shown in figure B & C. M (A) S (B) sha (C) (a) B corresponds to low...
-
Import quotas and tariffs ______. a. Reduce the quantity of imports b. Raise the domestic price of the good c. Recrease the welfare of domestic consumers d. Increase the welfare of domestic producers...
-
Why would U.S. producers and consumers be more concerned about Canadian trade restrictions than Swedish trade restrictions?
-
In January 1991, management of the Kansas City Works of Armco's Midwestern Steel Division began implementing a new performance measurement system. Bob Nenni, Director of Finance for the Midwestern...
-
7.5. Explosion time. Consider the SDE dY = ex dB, Y = 0. et Clearly, the local volatility grows much faster than the assumption of Theorem 7.21. Sample 100 paths of this process using the Euler...
-
A particle with a mass M = 68.4 MeV/c at rest decays into two particles. The first with mass m = 7.2 MeV/c and the second one is massless (i.e. a photon). It is given that the life-time of the...
-
Question 3 i. In the evaluation of construction companies financial statements the gearing ratio and liquidity ratio have been described as providing useful information on company's activities. What...
-
Let U = {a, b, c, d, e, f, g, h), A = {a, b, d, e, g}, B = {b, c, e}, and C = {b, e, g}. Locate all eight elements of U in a three-loop Venn diagram, and then list the elements in the following sets....
-
Miller's Super Valu Meats (Miller's Meats) is a Winnipeg specialty retail store. The chain has decades of experience and has four (4) stores around the city. As the name states, Miller's is known as...
-
A mass-spring-damper system is described by the model m + c + kx = f (t) Where m = 0.25 slug, c = 2 lb-sec/ft, k = 25 lb/ft, and f(t) (lb) is the externally applied force shown in Figure. The forcing...
-
This problem continues the Draper Consulting, Inc., situation from Problem 12-45 of Chapter 12. In October, Draper has the following transactions related to its common shares: Oct 1 Draper...
-
In 2016, Frances net foreign investment was positive. Which was larger in France in 2016: national saving or domestic investment? Briefly explain.
-
Briefly explain whether you agree with the following statement: Because in 2016 national saving was a larger percentage of GDP in the United States than in the United Kingdom, domestic investment...
-
Why were the early and mid-1980s particularly difficult times for U.S. exporters?
-
A Major Disciplinary Infraction for Possession of a Weapon in school is a violation that occurs in school and severely interferes with the learning and safety of others, and is of a threatening or...
-
Outline three possible rights a shareholder may have if a corporation has only one class of shares. Define and explai the following: a) indoor management rule b) share c) shareholder d) fiduciary...
-
Is testing for drugs via urine or blood a violation of constitutional rights? What constitutional amendments are primarily involved?
Study smarter with the SolutionInn App