Calhoun Macro Ch. 3
When you are willing to pay $5 for a hamburger but you pay $4 for it, your consumer surplus for the hamburger is:
$1.
(Figure: Quantity of Good X) Refer to the figure. At a price of $200, consumer surplus is:
$10,000.
The market price of a good is $5 and 40 units of the good sell at this price. Its demand curve intersects the vertical axis at a price of $10 and has a constant slope. What is the approximate value of consumer surplus in this market?
$100
(Figure: Quantity of Good X) Refer to the figure. As the price falls from $200 to $100, consumer surplus changes by:
$12,500.
Which of the following could explain the figure?
Consumer income increases in the market for a normal good.
Suppose that Saudi Arabia can produce oil at $4 per barrel, Iran at $10 per barrel, and Canada at $25 per barrel. If the price of oil is $90 per barrel, what is total producer surplus per barrel for world suppliers?
$231
There are 100 consumers, each of whom values a concert ticket at a unique whole number dollar amount between $1 and $100. One customer is willing to pay $1, a second is willing to pay $2, a third is willing to pay $3, and so on. An unlimited number of concert tickets are on sale for $15 each. What is the total consumer surplus in this market?
$3,612.50
(Table: Excel Company Survey) The table shows the results of Excel Company's market survey. If the market price of Excel computers is $1,200 each, how much total consumer surplus (in $) are the four consumers earning?
$380
Refer to the figure. Calculate the dollar amount of consumer surplus being earned in this market when the price is $30 and there are 300 units consumed.
$4,500
The market price of a good is $10 and 40 units of the good sell at this price. Its demand curve intersects the vertical axis at a price of $12 and has a constant slope. What is the approximate value of consumer surplus in this market?
$40
In the figure, a $10 tax is imposed on the market for lobsters. What is the market price that lobster producers would need to receive to induce them to produce 5,000 bushels of lobster per day?
$60
Refer to the figure. The market price of the product is $20 per unit. Calculate the dollar amount of consumer surplus being earned in this market.
$60,000
Nigeria receives $53 of producer surplus from each barrel of oil sold at $60. At that level of production, Nigeria's cost to produce a barrel of oil is:
$7.
Refer to the table. What is the total amount of producer surplus (per barrel of oil) earned by all four producers if the market price per barrel of oil is $51?
$87.75
Which of the following choices correctly illustrates how changes in opportunity costs affect supply?
A farmer produces corn and wheat. The price of wheat rises, so he shifts his resources toward wheat and the supply of wheat rises.
Recall the discussion in your textbook about the supply curve for oil. What explains why the supply curve for oil is positively sloped?
As the price of oil rises, more producers enter the market.
What will happen to the supply of workers 18 to 21 years after a baby boom?
It will increase because of the influx of new adults into the labor market.
Suppose it is widely believed that the price of flat-screen, high-definition televisions will be lower next year. What will happen as a result of such beliefs?
The demand for flat-screen TVs will decrease now.
In 2011, the United States Senate voted to end ethanol subsidies. What will be the effect of this bill in the market for ethanol?
Supply will decrease
A firm produces volleyballs and soccer balls. What happens to the supply of soccer balls if the market price of volleyballs increases?
The opportunity cost of producing soccer balls rises, so the supply curve of soccer balls decreases.
Peoples' expectation of the price of gasoline going up tomorrow may increase the demand for gasoline today. If so, what does this imply about the relationship between gasoline tomorrow and gasoline today?
They are substitutes.
Which of the following statements is TRUE?
When the price of oil rises, consumers tend to use oil for uses in which there are few substitutes for it.
Zoey receives a big raise at work and decides to buy additional porcelain figurines. Which of the following statements is TRUE?
Zoey considers porcelain figurines to be a normal good.
A decrease in expected future supply of a good will lead to:
a change in the demand for the good even before the supply actually decreases.
This graph illustrates the work of psychologists Harvey Whitehouse and Quentin Atkinson, as published in the April 23-29, 2011 issue of The Economist. The "unpleasantness" of religious rituals (0 is low, 5 is high) is along the x-axis. How often the religion requires the ritual to be performed is along the y-axis. What economic concept does this diagram represent?
a demand curve.
Which of the following would cause the demand for hot dog buns to increase?
a fall in the price of hot dogs
In the market for fertilizer, an:
advance in technology will increase the supply of fertilizer.
In the diagram, which of the following factors would cause the demand curve to shift from D1 to D2?
an increase in income if this is an inferior good
The current demand for parking in a city's downtown district is such that all the parking garages are full. If there is an increase in the city's population, there will be:
an increase in the willingness to pay for parking.
If the price of swimming pools decreases, we would expect the demand for:
chlorine, a complement good, to increase.
Imagine that millions of refugees move out of country A and into country X. This would cause the demand for housing in country A to _____ and the demand for housing in country X to _____.
decrease; increase
Suppose that Country X is a high-cost producer of oil and Country Y is a low-cost producer of oil. The citizens of Country X use both oil produced in their own country as well as oil produced in Country Y. If the market price of oil decreases, oil production in Country X will _______, and the citizens of Country X will _________________.
decrease; purchase a larger fraction of their oil from Country Y
As the population of elderly in the United States increases, which service will likely see the biggest increase in demand?
home medical care
Cell phone data plans are most useful when used with a smartphone, and smartphones are most useful when used with a data plan. As the price of data plans falls, the demand for smartphones will:
increase, because smartphones and data plans are complements.
As world coal prices rise due to increasing scarcity and coal-based energy costs rise, the demand for wind energy will:
increase.
If the price of computers ______, the demand for printers will ______.
increases; decrease
If the price of shotguns ______, the demand for shotgun shells will _______.
increases; decrease
A decrease in the opportunity cost of steel production will:
make suppliers more likely to produce steel, thus shifting the supply curve down and to the right.
(Figure: Supply Shifts) In the figure, the initial supply curve is S1. Producers engage in market speculation with the belief that the price of the good will increase in the near future. This would be represented in the figure by shifting the:
supply curve to S2, resulting in a lower quantity supplied at each price.
