Math 140 5.5 – Additional Applications to Business and Economics 1.
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Transcript of Math 140 5.5 – Additional Applications to Business and Economics 1.
![Page 1: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/1.jpg)
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Math 140
5.5 – Additional Applications to Business and Economics
![Page 2: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/2.jpg)
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Suppose there are 4 consumers in the market for burritos: Christine, David, Elida, and Joshua.
The demand curve is shown (so, for example, David is willing to buy a burrito per day at a price of $7).
The current market price line (at $5) is also shown.
![Page 3: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/3.jpg)
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The total differences between the prices consumers are willing to pay and the prices they actually pay is called _______________________.
![Page 4: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/4.jpg)
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The total differences between the prices consumers are willing to pay and the prices they actually pay is called _______________________.consumer surplus
![Page 5: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/5.jpg)
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In the graph, it is:
![Page 6: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/6.jpg)
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In the graph, it is:
![Page 7: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/7.jpg)
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In the graph, it is:
![Page 8: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/8.jpg)
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In the graph, it is:
![Page 9: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/9.jpg)
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In the graph, it is:
![Page 10: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/10.jpg)
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In the graph, it is:
![Page 11: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/11.jpg)
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In general, consumer surplus is the area between the demand curve and the price line.
![Page 12: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/12.jpg)
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Ex 1.Suppose a demand curve (in dollars per unit) is . First, find the price (call it at which 3 units will be demanded. Then, compute the consumer surplus at that price.
![Page 13: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/13.jpg)
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The ________________________ is simply the area under the demand curve.
![Page 14: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/14.jpg)
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The ________________________ is simply the area under the demand curve.
total willingness to spend
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The ________________________ is simply the area under the demand curve.
total willingness to spend
![Page 16: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/16.jpg)
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Ex 2.Find the total amount of money consumers are willing to spend to get 10 units if dollars per unit.
![Page 17: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/17.jpg)
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The total differences between the prices producers actually receive and the prices at which they are willing to sell is called _________________.
It is the area between the price line and the supply curve.
![Page 18: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/18.jpg)
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The total differences between the prices producers actually receive and the prices at which they are willing to sell is called _________________.
It is the area between the price line and the supply curve.
producer surplus
![Page 19: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/19.jpg)
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The total differences between the prices producers actually receive and the prices at which they are willing to sell is called _________________.
It is the area between the price line and the supply curve.
producer surplus
![Page 20: Math 140 5.5 – Additional Applications to Business and Economics 1.](https://reader036.fdocuments.net/reader036/viewer/2022062413/5a4d1b2d7f8b9ab059999a9e/html5/thumbnails/20.jpg)
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Ex 3.Suppose a supply curve (in dollars per unit) is . First, find the price (call it ) at which 5 units will be supplied. Then, compute the producer surplus at that price.