CENGAGE | MINDTAP Homework (Ch 07) Use the black point (plus symbol) to indicate the equilibrium price and quantity of smartphones. Then use the green point (triangle symbol) to fill th area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. Demand 300 270 Equilibrium 240 A 210 180 Consumer Surplus 150 PRICE (Dollars per phone) 120 Producer Surplus 90 Supply 60 0 25 50 75 100 125 150 175 200 225 QUANTITY (Millions of phones) Total surplus in this market is $ million. Grade It Now Save & ContinueCENGAGE | MINDTAP Homework (Ch 07) Supply PRICE Demand QE QUANTITY For an output level exactly at QE , the value of a unit to a buyer is the cost of a un market power an externality Suppose a firm that produces for this market is able to dump toxic chemicals into a river next to its fa sons wildlife and harms the health of nearby residents who have no business with the company. This scenario is characterized by ly , which is an example ofin ECN2020-11272.202210: Audio Ch586 CENGAGE | MINDTAP Homework (Ch 07) Supply PRICE Demand QUANTITY For an output level exactly at QE , the value of a unit to a buyer is the cost of a unit to a seller. market failure at produces for this market is able to dump toxic chemicals into a river next to its factory, which poisons wildlife and harms the welfare esidents who have no business with the company. This scenario is characterized by , which is an example of Grade It Now Save & Continue Continue without savingHomework (Ch 07) Charles 90 Ana PRICE (Dollars per used sma A Yakov 60 Simone 30 Rajiv 5 QUANTITY (Used smartphones) Region A (the purple shaded area) represents the total producer surplus when the market price is $ , while Region B (the grey shaded area) represents when the market price the change in total producer surplus In the follo re true or false based on the information provided on the previous graph. the total producer surplus Statemel True False Assuming each student receives a positive surplus, Simone will always receive more producer surplus than Yakov. O O Producer surplus is smaller when the price is $105 than when it is $90. O O In order for Ana to earn a producer surplus of exactly $15 from selling a used smartphone, the market price needs to be $Homework (Ch 07) Charles 90 Ana PRICE (Dollars per used sma A Yakov 60 Simone 30 Rajiv 0 5 QUANTITY (Used smartphones) Region A (the purple shaded area) represents the total producer surplus when the market price is $ , while Region B (the grey shaded area) represents when the market price changes from $90 to $105 In the following table, indicate which statements are true or false based on the vious graph. is $105 Statement True False is $90 Assuming each student receives a positive surplus, Simone will always receive akov. O O changes from $135 to $105 Producer surplus is smaller when the price is $105 than when it is $90. O O In order for Ana to earn a producer surplus of exactly $15 from selling a used smartphone, the market price needs to be $ Grade It NowCENGAGE MINDTAP Homework (Ch 07) 6. Producer surplus and price changes The following graph shows the supply curve for a group of students looking to sell used smartphones. Each student has only one used smartphone to sell. Each rectangular segment under the supply curve represents the "cost," or minimum acceptable price, for one student. Assume that anyone who has a cost just equal to the market price is willing to sell his or her used smartphone. (?) 180 150 Dina 120 Charles 90 PRICE (Dollars per used smartphone) Ana A Yakov 60 Simone 30 Rajiv 5 QUANTITY (Used smartphones)CENGAGE | MINDTAP Homework (Ch 07) 9. Market efficiency and market failure Suppose that the following graph shows a free market equilibrium, with QE as the equilibrium quantity. (? Supply PRICE Demand QUANTITY For an output level exactly at OE, the value of a unit to a buyer is the cost of a unit to a seller. MacBook AiCENGAGE | MINDTAP Homework (Ch 07) Supply PRICE Demand QE QUANTITY equal to greater than less than For an output level exactly at QE , the value of a unit to a buyer is why the cost of a unit to a seller. Suppose a firm that produces for this market is able to dump toxic chemicals into a river next to its factory, which poisons wildlife and harms the health of nearby residents who have no business with the company. This scenario is characterized by , which is an example of Grade It Now Save & Continue Continue without saving