`Chapter 4 Lab ECON 2101 Group Number: H List group members who attended the lab meeting here: Abby Auty, Matt Manalo, Rahen Patel List group members who did not attend lab meeting here, if any: *** NOTE: DRAW A GRAPH WHENEVER NECESSARY TO RECEIVE FULL CREDIT AND BE SURE TO INCLUDE THE GRAPH IN YOUR ANSWER SUBMISSION. *** 1. If the price in a market is above the equilibrium price, does this create a surplus or a shortage?
2. When the price is above the equilibrium price, does greed (in other words, self-interest) tend to push the price down or up?
3. Jules wants to purchase a Royale with cheese from Vincent. Vincent is willing to offer this tasty burgerfor $3. The most Jules is willing to pay for the tasty burger is $8 (after all, his girlfriend is a vegetarian, sohe doesn’t get many opportunities for tasty burgers). a. How large are the potential gains from trade if Jules and Vincent agree to make this trade? In other words, what is the sum of producer and consumer surplus if the trade happens?
b. If the trade takes place at $4, how much producer surplus goes to Vincent? How much consumer surplus goes to Jules?
c. If the trade takes place at $7, how much producer surplus goes to Vincent? How much consumer surplus goes to Jules?
