week2microass2 - Answer the following questions based on...

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Answer the following questions based on the graph that represents J.R.'s demand for ribs per week of ribs at Judy's rib shack. a. At the equilibrium price, how many ribs would J.R. be willing to purchase? b. How much is J.R. willing to pay for 20 ribs? c. What is the magnitude of J.R.'s consumer surplus at the equilibrium price? d. At the equilibrium price, how many ribs would Judy be willing to sell? e. How high must the price of ribs be for Judy to supply 20 ribs to the market? f. At the equilibrium price, what is the magnitude of total surplus in the market? g. If the price of ribs rose to $10, what would happen to J.R.'s consumer surplus? h. If the price of ribs fell to $5, what would happen to Judy's producer surplus? i. Explain why the graph that is shown verifies the fact that the market equilibrium (quantity) maximizes the sum of producer and consumer surplus. First, let me talk about some important concepts with this graph. This graph shows that a decrease in price increases the quanity demanded by J.R.
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This note was uploaded on 01/10/2010 for the course ECON 211 3M taught by Professor Adam during the Spring '09 term at Nicholls State.

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week2microass2 - Answer the following questions based on...

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