The price of good X (videos for example) is $10 without Amazon Prime and $8 with...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The price of good X (videos for example) is $10 without Amazon Prime and $8 with Prime. If the Amazon prime membership is $25 per year, should you buy Prime? Px 20 20 10 10 Price of Good X with and without Amazon Prime 8 10 12 Qx No because consumer surplus is $50 without prime and $47 with it. No because consumer surplus is $144 without Prime and $119 with Prime. Yes because consumer surplus is $72 with Prime and $50 without it. Yes because with person purchases more of Good X with Prime. What happens to total surplus at equilibrium if the supply curve shifts from P=2+Q and becomes P=4+Q while demand is unchanged of equation P = 20-Q? Total surplus rises by $17. Total surplus is unchanged. Total surplus fall by $17. Total surplus fall by $20.5. You are considering buying a monthly metro pass for the subway at $150 or paying $4 per ride (Pd). Your monthly demand curve is Pd = 60-2Qd where Qd is the number of rides per month. Given this information your consumer surplus will be $784 buying each ride & $900 with the monthly pass. $600 buying each ride & $700 with the monthly pass. $750 buying each ride & $900 with the monthly pass. $784 buying each ride & $750 with the monthly pass. The economic value created in equilibrium in the market shown below is P $10 S $6 $2 O $4. 10 20 30 40 50 60 $80. $120. $40. $160. Price ($) 15 14 13 12 11 10 S 9 8 7 654322 1 D 10 20 30 40 50 60 70 80 90 Quantity According to the graph shown, if the market goes from equilibrium to having its price set at $2 below equilibrium: The consumer surplus will be $160. Consumer surplus will rise by $30. The deadweight loss will be $120. the deadweight loss will be $90. The price of good X (videos for example) is $10 without Amazon Prime and $8 with Prime. If the Amazon prime membership is $25 per year, should you buy Prime? Px 20 20 10 10 Price of Good X with and without Amazon Prime 8 10 12 Qx No because consumer surplus is $50 without prime and $47 with it. No because consumer surplus is $144 without Prime and $119 with Prime. Yes because consumer surplus is $72 with Prime and $50 without it. Yes because with person purchases more of Good X with Prime. What happens to total surplus at equilibrium if the supply curve shifts from P=2+Q and becomes P=4+Q while demand is unchanged of equation P = 20-Q? Total surplus rises by $17. Total surplus is unchanged. Total surplus fall by $17. Total surplus fall by $20.5. You are considering buying a monthly metro pass for the subway at $150 or paying $4 per ride (Pd). Your monthly demand curve is Pd = 60-2Qd where Qd is the number of rides per month. Given this information your consumer surplus will be $784 buying each ride & $900 with the monthly pass. $600 buying each ride & $700 with the monthly pass. $750 buying each ride & $900 with the monthly pass. $784 buying each ride & $750 with the monthly pass. The economic value created in equilibrium in the market shown below is P $10 S $6 $2 O $4. 10 20 30 40 50 60 $80. $120. $40. $160. Price ($) 15 14 13 12 11 10 S 9 8 7 654322 1 D 10 20 30 40 50 60 70 80 90 Quantity According to the graph shown, if the market goes from equilibrium to having its price set at $2 below equilibrium: The consumer surplus will be $160. Consumer surplus will rise by $30. The deadweight loss will be $120. the deadweight loss will be $90.
Expert Answer:
Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0071267441
7th Edition
Authors: Michael R. baye
Posted Date:
Students also viewed these economics questions
-
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
-
This assignment requires you to complete the 2022 tax reporting for a fictional woman named Anna Smith. Question 1 T1 - step 4 - line 66 This is Anna's taxable income Answer: Question 2 T1 - step...
-
Ronnie owns 600 shares of a stock mutual fund. This year he received dividend distributions of 60 stock mutual fund shares ($ 40 per share) and long term capital gain distributions of 45 stock mutual...
-
The IFRS Conceptual Framework, paragraph 37, indicates the following relating to the principle of conservatism or prudence: The preparers of financial statements ... have to contend with the...
-
The article "An Investigation into the Ball Burnishing of Aluminium Alloy 6061-T6" (M. El-Axir, J Engineering Manufacture, 2007:1733-1742) presents the results of study that investigated the effects...
-
Applying Rayleigh's method, determine the fundamental frequency of a cantilever beam (fixed at \(x=l\) ) whose cross-sectional area \(A(x)\) and moment of inertia \(I(x)\) vary as \(A(x)=A_{0} x /...
-
Data-2-Go manufactures and sells flash drives. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month:...
-
A solenoid consists of 250 loops where each loop has an area A = 1.50 cm2 and the length of the solenoid is L = 12.0 cm. If the solenoid has a current I = 0.500 A, what is the magnitude of the...
-
Communication and Negotiation Skills Scenario: Negotiating with an Aggressive Customer you Need to Keep (Total Word limit 3000) Client: We need to talk. I can get your product now for half the...
-
A company has the following expense transactions in January: 1 ) A vendor performed $ 1 0 0 of services for you on Jan 1 0 and sent the invoice to you customer on Jan 2 0 . You paid the vendor on Jan...
-
The Poster company sells a product with a per-unit contribution margin of $412. The company has fixed costs of $8,500 an like to achieve a $6,000 profit. How many units must they sell to cover fixed...
-
The income statement of Orange Company showed the following figures: Revenues Cost of Goods Sold Gross Margin Operating Expenses Operating Income Php750,000 250,000 500,000 200,000 300,000 Orange...
-
Here's a challenging question related to a case study on the subject of "Human Resource Planning": Case Study Scenario: You are an HR manager for a rapidly growing technology startup. The company has...
-
Project S costs $ 2 8 0 0 0 0 and is expected to produce annual cash flows of $ 3 9 2 0 0 for five year plus an additional one time cash flows of $ 2 8 0 0 0 0 at the end of year five. The RR is 6 %...
-
1. Strategies typically used to deal with threats or risks that may have negative impacts on project objectives if they occur include all of the following EXCEPT: A. Interpret B. Avoid C. Transfer D....
-
Prove the formula for (d/dx)(cos-1x) by the same method as for (d/dx)(sin-1x).
-
The coupling is used to connect the two shafts together. Assuming that the shear stress in the bolts is uniform, determine the number of bolts necessary to make the maximum shear stress in the shaft...
-
The aluminum tube has an inner diameter of 25 mm and a wall thickness of 5 mm. Determine the maximum shear stress in the fixed tube when the force of 600 N is applied to the cables. Also, sketch the...
-
The solid shaft has a diameter of 2 in. If it is subjected to the torques shown, determine the maximum shear stress developed in regions CD and DE of the shaft. The bearings at A and F allow free...
Study smarter with the SolutionInn App