Principles of Microeconomics 7th Edition solutions

Principles of Microeconomics 7
Melissa buys an iPhone for $120 and gets consumer surplus of $80.a.What is her willingness to pay?b.If she had bought the iPhone on sale for $90, what would her consumer surplus have been?c.If the price of an iPhone were $250, what would her consumer surplus have been?

Principles of Microeconomics 7
An early freeze in California sours the lemon crop. Explain what happens to consumer surplus in the market for lemons. Explain what happens to con-sumer surplus in the market for lemonade. Illustrate your answers with diagrams

Principles of Microeconomics 7
Suppose the demand for French bread rises. Explain what happens to producer surplus in the market for French bread. Explain what happens to producer sur-plus in the market for flour. Illustrate your answers with diagrams

Principles of Microeconomics 7
3.John has been working as a tutor for $300 a semester. When the university raises the price it pays tutors to $400, Emily enters the market and begins tutoring as well. How much does producer surplus rise as a result of this price increase?a.by less than $100b.between $100 and $200c.between $200 and

Principles of Microeconomics 7
Ernie owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to pro-duce each bottle of water:Cost of first bottle $1Cost of second bottle $3Cost

Principles of Microeconomics 7
Consider a market in which Bert from problem 4 is the buyer and Ernie from problem 5 is the seller.a.Use Ernies supply schedule and Berts demand schedule to find the quantity supplied and quan-tity demanded at prices of $2, $4, and $6. Which of these prices brings supply and demand into equilibrium?b

Principles of Microeconomics 7
The cost of producing flat-screen TVs has fallen over the past decade. Lets consider some implications of this fact.a.Draw a supply-and-demand diagram to show the effect of falling production costs on the price and quantity of flat-screen TVs sold.b.In your diagram, show what happens to consumer surp

Principles of Microeconomics 7
There are four consumers willing to pay the following amounts for haircuts:Gloria: $7 Jay: $2 Claire: $8 Phil: $5there are four haircutting businesses with the follow-ing costs:Firm a: $3 Firm B: $6 Firm C: $4 Firm D: $2Each firm has the capacity to produce only one haircut. For

Principles of Microeconomics 7
One of the largest changes in the economy over the past several decades is that technological advances have reduced the cost of making computers.a.Draw a supply-and-demand diagram to show what happened to price, quantity, consumer surplus, and producer surplus in the market for computers.b.Forty year

Principles of Microeconomics 7
A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls. Your friends monthly demand for minutes of calli

Principles of Microeconomics 7
Consider how health insurance affects the quantity of healthcare services performed. Suppose that the typical medical procedure has a cost of $100, yet a person with health insurance pays only $20 out of pocket. Her insurance company pays the remaining $80. (The insurance company recoups the $80 thro