Consumer surplus | Economics homework help
4. What is the combined consumer surplus for the five consumers in Figure 5.4 who buy Spyders when the price drops to $800,000?
5. What is the total revenue (price 3 quantity) received by the car dealer in Figure 5.4 if he charges
(a) A uniform price of $750,000?
(b) Maximum individual prices to Fred, Michel, Hua, Carlos, John, and Marty?
|
LO5-3 6. The following data reveal how much
$2,000 1,900
1,800
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
0
0 1
2 3 4 5 6 7 8 9 10
QUANTITY (cruises per period)
each consumer is willing to pay for an Alaskan cruise:
Amy $ 900 Ed $2,000 Bob $1,100 Gigi $1,300 Carol $1,500 Hugo $1,800 Eduardo $ 400 Isabelle $1,500
(a) Draw the market demand for these eight consumers on the accompanying graph.
(b) ) If the cruise costs $1,000, how many
passengers will there be?
(c) ) If the cruise costs $1,000, how much
total revenue will be collected?
(d) ) If the cruise costs $1,000, how much consumer surplus will those
passengers enjoy?
(e) ) If the cruise ship could perfectly price discriminate, how much more
revenue could it take in?
LO5-4
LO5-1
114