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Alexxx [7]
3 years ago
11

Below table represents buyers’ willingness to pay for a roasted chicken and consider that there is only one supplier whose cost

to produce 1 unit of the product is $2 and current price in the market is $6. Calculate total surplus in this market. (1 point)
------------------------------ Abraham----- Smith----Chuck
Willingness to pay -------- $10 -------- $7----------$5
Business
1 answer:
frez [133]3 years ago
3 0

Answer:

$13

Explanation:

total consumer surplus = ($10 - $6) + ($7 - $6) = $4 + $1 = $5

total supplier surplus = ($6 - $2) x 2 units = $4 x 2 = $8

total surplus in the market = consumer surplus + supplier surplus = $5 + $8 = $13

Since the price is higher than Chuck's willingness to pay, no transaction will occur resulting in 0 surplus.

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The answer is "managing for long-run profits".

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4 0
3 years ago
Suppose that the central bank must follow a rule that requires it to increase the money supply when the price level falls and de
Ann [662]

Answer:

A). Decrease the money supply so interest rates rise.

Explanation:

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6 0
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Answer:

See below

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