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Supply and Demand: End of Chapter Problem From the following chart, draw the demand curve for pencils (in hundreds): 40 @ Macmillan Learning Price Quantity Demanded (100s) 35 $5 60 30 $15 45 $25 35 25 $35 20 Price (5) 20 15 10 5 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 Quantity (000s)m Suppl)r and Demand: End of Chapter Problem .E E '\\- I I E In Sucrosta, the supply curve tor sugar 15 presented In both the graph and the table. C ='\" 'E g Price {per HID-pound bag) Quantity 'L" $30 10,000 $50 15,000 $110 20,000 Price of sugar 0 5 10 15 20 25 Quantil}r or suger (0005) Under pressure from nutrition activists, the government decides to tax sugar producers with a $5 tax per 100 pound bag. Using the graph, draw the new supply curve. After the tax is enacted, what price will bring forth quantities of 10,000? 15,000? 20,000? Price {per 100 pound bag) Quantity Supply and Demand: End of Chapter Problem @ Macmillan Learning Let's think about the demand for LED TVs. a. If the price for a 60-inch LED TV is $800, and Newhart would be willing to pay $3,000, what is Newhart's consumer Newhart's consumer surplus: $ surplus? b. Consider the following figure for the total demand for LED TVs. At $800 per TV, 12,000 TVs were demanded. What Total consumer surplus: $ would be the total consumer surplus (CS)? Calculate the total, and identify it on the diagram with the points A, B, and C. c. Where is Newhart in the figure? Use the line segment N to show his position. 6,000 N2 5.500 A 5,000 4,500 4,000 NI C $,000- P3 500 2,000 1,50 1,000 B Price 500 Demand 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Quantity (000s)