FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 4: Consumer and Producer Surplus

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

A consumer's willingness to pay depends on the:

A) cost of producing a given good or service.
B) expected additional benefit of consuming a given good or service.
C) size of the shortage of a given good or service.
D) size of the surplus of a given good or service.

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

Use the following to answer question: -(Figure: Producer Surplus II) Look at the figure Producer Surplus II.At a price of P₂,producer surplus equals the area:

A) LMK.
B) P₁K0.
C) P₂M0.
D) P₂P₁KM.

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

If total surplus falls,there may have been a(n) _____ in demand or a(n) _____ in supply.

The total surplus in a market is the:

Floyd's cost of selling haircuts is the lowest price at which he is willing to sell haircuts.

Use the following to answer question: -(Table: Pumpkin Market) There are two consumers,Andy and Ben,in the market for pumpkins.Their willingness to pay for each pumpkin is shown in the table Pumpkin Market.There are two producers of pumpkins,Cindy and Diane,and their costs are also shown.The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5.At the equilibrium price and quantity,total surplus is:

Use the following to answer question: -(Figure: The Market for Hamburgers) The figure The Market for Hamburgers shows the weekly market for hamburgers in Tuscaloosa.If the price of a hamburger falls from $2.00 to $1.50,the gain in consumer surplus to consumers who are persuaded to buy at the lower price (and who were not buying when the price was $2.00) is equal to:

Use the following to answer question: -(Table: Pumpkin Market) There are two consumers,Andy and Ben,in the market for pumpkins.Their willingness to pay for each pumpkin is shown in the table Pumpkin Market.There are two producers of pumpkins,Cindy and Diane,and their costs are also shown.The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5.At the equilibrium price and quantity,total consumer surplus is:

Suppose you pay $10 to see Ryan Reynolds in his next movie.Suppose Mr.Reynolds receives $31 million to work in this movie.This means that:

When a market is efficient:

Use the following to answer question: -(Figure: Consumer Surplus III) In the figure Consumer Surplus III,total consumer surplus is _____ when the price is $10.

(Table: Willingness to Pay for Peanuts) Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $3,the total value of consumer surplus is equal to:

(Table: Willingness to Pay for Peanuts) Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $9,who will purchase a bag?

Use the following to answer question: -(Table: Pumpkin Market) There are two consumers,Andy and Ben,in the market for pumpkins.Their willingness to pay for each pumpkin is shown in the table Pumpkin Market.There are two producers of pumpkins,Cindy and Diane,and their costs are also shown.The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5.At the equilibrium price and quantity,total producer surplus is:

Use the following to answer question: -(Figure: Consumer and Producer Surplus) Look at the figure Consumer and Producer Surplus.If the price is held below equilibrium,producer surplus will be _____ if the market were in equilibrium and total surplus will be _____ if the market were in equilibrium.

If the market for tickets to the World Series is in equilibrium but owners of tickets who would have sold their tickets are not allowed to sell,while fans who would not sell their tickets are required to sell,total surplus would decrease.

Prices are important economic signals because they convey information about how much consumers are willing to pay for a good and how much it costs sellers to produce a good.

Use the following to answer question: -(Table: Consumer Surplus) Use Table: Consumer Surplus.Assume that each student wants to buy one ticket.If the price of a ticket to see The Nutty Nutcracker is $75,Miguel's consumer surplus is:

Use the following to answer question: -(Table: Pumpkin Market) There are two consumers,Andy and Ben,in the market for pumpkins.Their willingness to pay for each pumpkin is shown in the table Pumpkin Market.There are two producers of pumpkins,Cindy and Diane,and their costs are also shown.The equilibrium quantity of pumpkins is:

(Figure: Monthly Supply of Bread) The figure Monthly Supply of Bread represents the monthly supply of bread at a local bakery.At $3 per loaf,the bakery produces 120 loaves per month.The producer surplus received by this bakery is equal to: