Holding price and quantity constant, why does the consumer surplus from a product decline if the demand

Question:

Holding price and quantity constant, why does the consumer surplus from a product decline if the demand curve becomes more elastic?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 9781464146978

1st Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

See More Books

Question Posted: Jan 13, 2016 02:27 AM

See More Questions

1. The following relations describe demand and supply. Q = 700 - 100P (1) Q = -100 + 100P (2) Where P is price in dollar and Q is quantity in unit. a. Which equation (1) or (2), is demand equation...
There are seven consumers, each of whom is hungry for exactly one Butterfinger. The consumers' maximum willingness to pay is given in the table on the right: Consumer (age, gender) Maximum...
In this chapter we showed how the "consumer surplus" that people receive from being able to consume a good at its current price is given by the area below the demand curve and above that price. In...
List 5 Business Uses of Location Analytics? In what way a business can use location data?
Why is depreciation expense recorded each accounting period on depreciable assets?
Western Refining purchased a model MTVS peristaltic pump for injecting antiscalant at its nanofiltration water conditioning plant. The cost of the pump was $1200. If the chemical cost is $11 per day,...
Thirty-five consecutive samples of 100 bearings each, taken from a factory, had, respectively, 1, 2, 5, 3, 4, 2, 6, 8, 1, 2, 3, 9, 8, 0, 12, 10, 5, 4, 1, 8, 6, 7, 9, 4, 8, 1, 2, 6, 7, 5, 8, 1, 3, 4...
Roddickton Manufacturing Co. has gathered the following information to develop predetermined OH rates for 2010. The company produces a wide variety of energy-saving products that are processed...
Imagine a vendor responded to your request for a HRIS proposal. What are the indirect/direct costs and benefits of the HRIS? What is the cost of implementation (include dollar estimates)? Does the...
The average per capita income for Wisconsin is reported to be $37,314, and for South Dakota it is $37,375almost the same thing. A random sample of 50 workers from each state indicated the following...
Combine the graphs and equations from questions 3 and 4 and determine the following: a. The equilibrium price of broadband Internet service b. The equilibrium quantity of broadband Internet service...
The Ministry of Tourism in the Republic of Palau estimates that the demand for its scuba diving tours is given by QD = 6,000 20P, where Q is the number of divers served each month and P is the price...
Consider the following information about Stocks I and II: The market risk premium is 7.5 percent, and the risk-free rate is 4 percent. Which stock has the most systematic risk? Which one has the most...
In what ways might endorphins help to produce the placebo effect? Is there a difference between believing that ones pain is reduced and actually experiencing reduced pain? Why or why not?
Nonverbal realms, such as emotions and music, are controlled primarily by the __________hemisphere of the brain, whereas the __________hemisphere is more responsible for speaking and reading.
The gap between two neurons is bridged by a chemical connection called a __________.
Which set of prerequisites must be met before an instance can be accessed from the Internet? Choose one or more options. A. The instance must be in a public subnet. B. The instance must be in a...
What must a company do for hedge accounting to be applied?
Water enters a garden-hose nozzle with an average velocity of 1.8 m/s. The diameter at the nozzle entrance is 15 mm. The open nozzle is such that the effective flow area at the exit is an annulus...
X-1 Find the domain of the function f(x) : x 1 2 - O (-00, -1) U (-1, ) O (-00, 1) U (1, ) O -00, -1) U (-1, 1) U (1, 0) O (- 1, 1)
Assume that soybean production is perfectly competitive. When we study the behavior of the firm, we assume that the demand faced by that firm is perfectly elastic. Yet in the marketplace, demand may...
General supply and demand analysis suggests that, in the short run, a decrease in demand causes the price of a good to fall. a. Is the same assertion true (that decreases in demand cause prices to...
Suppose eggs are produced competitively, and that the egg industry is a constant cost industry. a. Fill in the table with appropriate responses (increases, decreases, no change) in response to each...
What effect does an antagonist drug have over the receptors ?
Read this article on the differences and Comparisons between UNIX and LINUX http://www.diffen.com/difference/Linux_vs_Unix, then do some research and post your thoughts on each of the systems. Based...
Assume that in 2023, Bobby had a vacant lot that was given to him as a gift from his father that had an FMV of $40,000 and an adjusted basis of $15,000.

Holding price and quantity constant, why does the consumer surplus from a product decline if the demand

Question:

Step by Step Answer:

To conclude i can say that all else equal if deman...View the full answer

Microeconomics

Students also viewed these Economics questions