Bert, as a consumer, places the value on a pair of jeans, economics homework help

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Homework #2 for Week #4

 
Q.3 (40 points) Bert, as a consumer, places the value on a pair of jeans as follows.

Value of first  pair: $70
Value of second  pair: $60
Value of third  pair: $50
Value of fourth  pair: $40
Value of fifth  pair: $30
Value of sixth  pair: $20
Value of seventh pair: $10

Ernie, as a producer, pays the following cost to produce jeans.

Cost of first  pair: $10
Cost of second  pair: $20
Cost of third  pair: $30
Cost of fourth  pair: $40
Cost of fifth  pair: $50
Cost of sixth  pair: $60
Cost of seventh pair: $70

Using the information given above, answer the following questions.

(1)  If five pairs of jeans were ordered, what price will Ernie charge per pair?  What kind of function is being used to answer the question?

(2)  If five pairs of jeans are available to buy, what price is Bert willing to pay per pair?  What kind of function is being used to answer the question? 

  (3)  If the price is $40, what is the size of the consumer surplus? 

  (4)  If the price is $40, what is the size of the producer surplus? 

Q.4  (10 points) (1) Checkpoint Question 4-2-6. 

Checkpoint Question 4-2-6  In the Professor Park’s lecture for consumer surplus for an indivisible good, what is the size of consumer surplus derived from the purchase of the second  hamburger?

Checkpoint Question 4-3-2. 

Checkpoint Question 4-3-2  In the Professor Park’s lecture for consumer surplus for a divisible good,  what is the first question asked by a consumer in the slow motion process for purchasing? 

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