Figure 1 25 20 15 10 5 0 in Supply & Demand 10 15 20 1) In Figure 1, label the vertical & horizontal axes and label the

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Figure 1 25 20 15 10 5 0 In Supply Demand 10 15 20 1 In Figure 1 Label The Vertical Horizontal Axes And Label The 1 (54.17 KiB) Viewed 11 times

Figure 1 25 20 15 10 5 0 in Supply & Demand 10 15 20 1) In Figure 1, label the vertical & horizontal axes and label the demand curve and the supply curve appropriately. 2) What is the equilibrium outcome given the supply curve and demand curve in the diagram to the left? 3) What is the total revenue for producers generated given this equilibrium? What is the total expenditure by consumers? 4) What is the highest price that a buyer would pay to purchase the first unit of this good? (Buyer's reservation price) 5) What is the lowest price that a seller would accept to sell the first unit of this good? (Seller's reservation price) 6) Define "consumer surplus." See Section 3.5 in the Greenlaw & Shapiro textbook. 7) Define "producer surplus." 8) Calculate the "consumer surplus" (CS): CS= (Buyer's reservation price-actual price) X actual quantity) 9) Calculate the "Producer surplus" (PS): PS - (Actual price - seller's reservation price) X actual quantity) 10) Calculate the "Economic surplus" (ES): EC = CS + PS