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Homework answers / question archive / Instructions: Enter your answers as o whole number
Instructions: Enter your answers as o whole number. a. What is the quantity demanded at $150 per game console? Quantity demanded:1 1game consoles b. What Is the quantity supplied et $150 per game console?
Quantity supplied: [ f game consoles
c. What is the consumer surplus generated at a price of $150 per game console? Instructions: Use the tool provided 'CS' to Illustrate this area on the graph. Consumer surplus: $
I 1
d. Whet is the producer surplus generated at a price of $150 per game console?
Instructions: Uso the tool provided 'PS' to illustrate this area on the graph.
Producer surplus: $
I 1
e. Whet is total economic surplus at a price of $150 per game console?
Economic surplus: $
I 1
f. What Is the economic surplus generated if the market were In equilibrium?
Instructions: Use the tool provided: ES"' to illustrate this area on the graph,
Economic surplus in equilibrium: $
I I
Quantity demanded at $150 per game console:
At Price = $150
Quantity demanded = 80 units
b) Quantity supplied at $150 per game console:
At Price = $150
Quantity Supplied = 80 units
c) Consumer Surplus generated at a price of $150 per game console:
At Price = $150
Consumer Surplus = 0.5*(550 - 450)*20 + (450 - 150)*20 = $7,000
d) Producer Surplus generated at a price of $150 per game console:
At Price = $150
Producer Surplus = 0.5*(150 - 100)*20 = $500
e) Total economic surplus generated at a price of $150 per game console:
Total economic surplus = Consumer Surplus + Producer Surplus
= $7,000+$500
= $7,500
f) Equilibrium occurs at P = 250 and Q = 60. Economic surplus = 0.5*(550 - 100)*60 = 135
