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valkas [14]
3 years ago
13

Consider the market for socks. The current price of a pair of plain white socks is $5.00. Two consumers, Jeff and Samir, are wil

ling to pay $7.25 and $9.00, respectively, for a pair of plain white socks. Two sock manufacturers are willing to sell plain white socks for as little as $3.00 and $3.15 per pair. What is the total producer AND consumer surplus (i.e., social welfare) in this market
Business
1 answer:
mr_godi [17]3 years ago
4 0

Answer:

$10.10

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.

Consumer surplus = willingness to pay of a consumer - price of the good

Producer surplus is the difference between the price of the product and the least price the producer is willing to sell his product

Producer surplus = price of the product - least price the producer is willing to sell his product

Consumer surplus

Jeff :  $7.25 - $5 = $2.25

Samir: $9 - $5 = $4

Total consumer surplus = $2.25 + $4 = $6.25

Producer surplus

Ist manufacturer = $5 - $3 = $2

2nd manufacturer = $5 - $3.15 = $1.85

Total producer surplus = $2 + $1.85 = $3.85

Total social welfare = $3.85 + $6.25 = $10.10

I hope my answer helps you

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"Ecotourism" is the one way among the following choices that are given that <span>economies in southern and Eastern Africa are overcoming the economic challenges. The correct option among all the options that are given in the question is the third option or option "c". I hope the answer has helped you.</span>
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3 years ago
Preferred stock is a hybrid—a cross between a common stock and a bond—in the sense that it pays dividends that normally increase
shtirl [24]

Answer:

The correct answer is B. False.

Explanation:

Preferred shares are called because they have priority over common shares in the payment of dividends or upon settlement, although they are subordinated to the payment of bonds or obligations. Their conditions are negotiated directly between the issuing entity -bank- and the investor or shareholder. They are a high financial risk asset that can give high bank interest or large losses.

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3 years ago
Fred contributes cash of $350,000 to Strumble Partnership for his 50% interest in the partnership. For his 50% interest Gary con
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Answer:

Gary's Basis in the partnership interest is $155,000

Explanation:

Particulars                                                                                Amount ($)

Adjusted Basis Of Land                                                          250000

Mortage*Share In Percentage ($200000*50%)                    (100000)

Additional Borrowing*Share In Percentage ($50000*50%)   (25000)

#Difference*Share In Percentage ($100000-$40000)*50%     30000

          Basis                                                                                    155000

Difference:

Net Income                                                                                   100000

Distribution Of Each Partner*2 ($20000*2)                                   (40000)

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3 years ago
When​ Judy's income increased from ​$200 to ​$240 a​ week, she increased her demand for concert tickets by 20 percent and decrea
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Answer:

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income elasticity of demand (YED) = % change in Quantity demanded / % change in income

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YED for concert tickets =  20%/ 20% = 1

YED for bus rides = -20% / 20%  = -1

The income elasticity of demand for concert tickets and bus rides is  unitary which means the rise in income is proportionate to the increase in the quantity demanded.

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2 years ago
If a company buys back $100 worth of stock, this increases the cash flow to the stockholders by ___.
andreyandreev [35.5K]

If a company buys back $100 worth of stock, this increases the cash flow to the stockholders by exactly $100.

This is further explained below.

<h3>What are stockholders ?</h3>

Generally, An person or a legal organization that is registered by a company as the legal owner of shares of the share capital of a public or private business is referred to as a shareholder of that corporation.\

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Read more about stockholders

brainly.com/question/18523103

#SPJ1

7 0
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