Asked by Madeline Lombardo on May 09, 2024
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(Table: Pumpkin Market) There are two consumers,Andy and Ben,in the market for pumpkins.Their willingness to pay for each pumpkin is shown in the table Pumpkin Market.There are two producers of pumpkins,Cindy and Diane,and their costs are also shown.The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5.At the equilibrium price and quantity,Cindy sells _____ pumpkins,and her producer surplus is _____.
A) four;$2
B) three;$8
C) two;$3
D) one;$5
Producer Surplus
The difference between the amount that producers receive from the sale of a good or service and the minimum amount they would accept.
Equilibrium Price
The equilibrium price is the market price at which the quantity of goods supplied is equal to the quantity of goods demanded, leading to market balance.
Equilibrium Quantity
The amount of goods or services supplied that is equal to the amount demanded at the market equilibrium price.
- Elucidate the distinctions between consumer surplus and producer surplus.
- Ascertain the total, consumer, and producer surpluses within specific market circumstances.
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Learning Objectives
- Elucidate the distinctions between consumer surplus and producer surplus.
- Ascertain the total, consumer, and producer surpluses within specific market circumstances.
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