This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Can both producer surplus and consumer surplus exist at the same time in a particular market? ... (Read 170 times)

jc611

  • Hero Member
  • *****
  • Posts: 552
on: Jun 29, 2018
Can both producer surplus and consumer surplus exist at the same time in a particular market?
 
  What will be an ideal response?

Question 2

Redbox rents DVDs for 1 per day via self-service kiosks located across the United States. In 2007, each kiosk averaged about 50 rentals per day. Suppose Redbox increases their daily price to 1.50.
 
  What is the price elasticity of demand if rentals decrease by 20 per day? A) 1.25
  B) 1.33
  C) 1
  D) 0.8


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Tabitha_2016

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jun 29, 2018
Answer to Question 1

Yes. The actual price can be above the seller's marginal cost and below the buyer's maximum purchase price. So, buyer and seller can both earn a surplus on the same transaction.

Answer to Question 2

A


jc611

  • Member
  • Posts: 552
Reply 2 on: Jun 29, 2018
Excellent

diana chang

  • Member
  • Posts: 288
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Annual Federal Deficit (or Surplus), 1992–2016 Annual Federal Deficit (or Surplus), 1992–2016
Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896 Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896
Bereaved spouses studied before loss, at the time of loss, and 18 months after loss show five ... Bereaved spouses studied before loss, at the time of loss, and 18 months after loss show five ...
Time course for antibodies to the EBV viral–specific antigens. Time course for antibodies to the EBV viral–specific antigens.
Physics: Power, Energy and Time Physics: Power, Energy and Time
A time map of the genes studied in the experiment A time map of the genes studied in the experiment
Video: What Are Carbohydrates? Importance of Carbs & High Carb Food

For a complete list of videos, visit our video library