Answer the Following Questions Based on the Graph That Represents

question 288

Essay

Answer the following questions based on the graph that represents J.R.'s demand for ribs per week 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.

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Definitions:

Paid-in Capital

Equity capital that is contributed to a company by investors through the purchase of stock.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Paid-in Capital

The total amount of money or other assets that shareholders or owners have contributed to the company for use in business operations.

Par Value

The stated value of a financial instrument like a bond or stock share, as declared by the issuer.