Bert, as a consumer, places the value on a pair of jeans as follows. Value of first
Question:
Bert, as a consumer, places the value on a pair of jeans as follows.
Value of first pair: $30
Value of second pair: $28
Value of third pair: $26
Value of fourth pair: $24
Value of fifth pair: $21
Value of sixth pair: $19
Value of seventh pair: $17
Ernie, as a producer, pays the following cost to produce jeans.
Cost of first pair: $12
Cost of second pair: $15
Cost of third pair: $17
Cost of fourth pair: $19
Cost of fifth pair: $21
Cost of sixth pair: $24
Cost of seventh pair: $26
Using the information given above, answer the following questions.
(1) Derive the quantity demanded and the quantity supplied at the price of $19.
(2) Derive the equilibrium price and compute the sizes of the consumer and the producer surpluses at the equilibrium price.
Business and Administrative Communication
ISBN: 978-0073403182
10th edition
Authors: Kitty o. locker, Donna s. kienzler