David walks Carolyn’s dog once a day for $50 per week. Carolyn values this service at $60 per week, while the opportunity cost of David’s time is $30 per week. The government places a tax of $35 per week on dog walkers. Before the tax, what is the total surplus?

The total surplus is $30.

Explanation:

The total surplus before the tax is the sum of the producer surplus, and the consumer surplus.

In this case, the producer is David, who is walking the dog. David is making $50 per week for the task, while his opportunity cost (the value of his time if he did not walk the dog and did something else instead) is $30. As a result, his surplus, the producer surplus, is $20.

Carolyn, the consumer, is paying David $50, but she places a value of $60 on this activity, as a result, her surplus, the consumer surplus, is $10.

The sum of producer surplus ($20), and consumer surplus ($10), is $30.

the second one is 3mm

because i just took the test

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know