Project #82799 - 250 words Discussion and two 75 words reply

1.

Please give an example of when or where you have had some producer surplus.  Give another example of when or where you have had some consumer surplus.  Please be sepecific and make sure to include the ideas that are included in the reading(250 words)

two 75 words respond( do you agree what he/she said? why)

1.Producer surplus is when you expect to be paid to do a job minus what it costs you to do the job.  For example, I used to mow lawns for money.  It cost me approximately $2 in gas to mow a lawn, and I expected to be paid at a minimum $30 a lawn for a small to medium size lawn.  So in my case the producer surplus would be $28 a lawn.  We consider producer surplus the benefit to sellers for participating in a market.  Producer surplus is also very closely related to the supply curve.  The supply curve reflects what a sellers cost would be.  This allows us to measure producer surplus.  By looking at the supply curve you can see that the area below the price and above the supply curve will measure the producer surplus that exists in a market.

Consumer surplus is what a buyer is willing to pay for something less the amount they actually do pay for it.  This willingness to pay is directly tied to how much value the person holds in the item trying to be purchased.  For example, I very much enjoy playing my Xbox One games, so when the new games come out I am willing to pay full price because I need and want to have this game from the release date.  But as time goes on if I want to purchase an older Xbox One game I do not have the same desire to pay full price and will search around for a good bargain.  My desire is a lot less to rush to buy something for full price if it is older.  But when it is new, I need it on release night!  When you are thinking about consumer surplus, if you set a price of $25 to buy something, once the price reaches above $25 your willingness to purchase this item decreases, you will refuse to spend the money because it has reached a price point that you did not want to spend.  If the price is equal to what you are willing to pay, you will become indifferent to the product purchase.

 

2.

Producer surplus for myself is when I went to Sacramento State and they charged me a ton from tuition costs to living requirements. The costs were to high not only for me but my friends too. We all said that these schools has to be, as a college freshman in my ethic class, a producer surplus. In the text on page 144, it says that the idea for producers is the initial producer surplus that rises to the producer surplus to new producers. This idea reminds me of how large companies got their ideas from the other larges companies. For instance, Yahoo! towards Google or Samsung electronics towards many other companies. Producer surplus shows how we pay more for the things, like the top gaming equipment, we want and these consumers get trapped in paying full retail prices. On page 136, it says that consumer surplus is the consumers willingness to pay. The chart demonstrates that four people have different price ranges. When I buy text books I look online for a cheaper and better price and I can see that many online services have low prices and this works great for my budget. Consumer surplus also helps people not pay full price and people can save up money for something else that they may want or need.

Subject Business
Due By (Pacific Time) 09/20/2015 07:00 am
Report DMCA
TutorRating
pallavi

Chat Now!

out of 1971 reviews
More..
amosmm

Chat Now!

out of 766 reviews
More..
PhyzKyd

Chat Now!

out of 1164 reviews
More..
rajdeep77

Chat Now!

out of 721 reviews
More..
sctys

Chat Now!

out of 1600 reviews
More..
sharadgreen

Chat Now!

out of 770 reviews
More..
topnotcher

Chat Now!

out of 766 reviews
More..
XXXIAO

Chat Now!

out of 680 reviews
More..
All Rights Reserved. Copyright by AceMyHW.com - Copyright Policy