This topic contains a solution. Click here to go to the answer

Author Question: Can both producer surplus and consumer surplus exist at the same time in a particular market? ... (Read 703 times)

jc611

  • Hero Member
  • *****
  • Posts: 552
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
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
YES! Correct, THANKS for helping me on my review


ttt030911

  • Member
  • Posts: 315
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

For a complete list of videos, visit our video library