ECON 102- B.2.4.2
Kelly is willing to pay $68 for a pair of shoes for a wedding. She finds a pair at her favorite outlet shoe store for $58. Kelly's consumer surplus is
$10.
Refer to Figure 7-15. At the equilibrium price, producer surplus is
$100.
Refer to Figure 7-15. At the equilibrium price, consumer surplus is
$150.
Refer to Figure 7-15. If the government imposes a price floor of $60 in this market, then total surplus will be
$187.50.
Ivana produces cookies. Her production cost is $6 per dozen. She sells the cookies for $8 per dozen. Her producer surplus per dozen cookies is
$2.
Table 7-1 Buyer | Willingness To Pay Lori | $50.00 Audrey | $30.00 Zach | $20.00 Calvin | $10.00 Refer to Table 7-1. If price of the product is $30, then the total consumer surplus is
$20.
Refer to Figure 7-15. At the equilibrium price, total surplus is
$250.
Refer to Figure 7-15. If the government imposes a price ceiling of $60 in this market, then total surplus will be
$250.00.
Table 7-1 Buyer | Willingness To Pay Lori | $50.00 Audrey | $30.00 Zach | $20.00 Calvin | $10.00 Refer to Table 7-1. If the price of the product is $18, then the total consumer surplus is
$46.
Brock is willing to pay $400 for a new suit, but he is able to buy the suit for $350. His consumer surplus is
$50.
Table 7-7 The following table represents the costs of five possible sellers. Seller | Cost Abby | $1,500 Bobby | $1,200 Carlos | $1,000 Dianne | $750 Evalina | $500 Refer to Table 7-7. If the market price is $1,000, the producer surplus in the market is
$750.
If Gina sells a shirt for $40, and her producer surplus from the sale is $32, her cost must have been
$8.
Refer to Figure 7-2. When the price is P1, consumer surplus is
A+B+C.
Refer to Figure 7-2. When the price is P2, consumer surplus is
A.
Refer to Figure 7-8. When the price rises from P1 to P2, which area represents the increase in producer surplus to existing producers?
ABGD
Refer to Figure 7-8. Which area represents producer surplus when the price is P2?
ACH
Refer to Figure 7-8. Which area represents the increase in producer surplus when the price rises from P1 to P2?
AHGB
A seller's willingness to sell is
All of the above are correct.
Refer to Figure 7-8. Which area represents producer surplus when the price is P1?
BCG
Refer to Figure 7-8. Which area represents the increase in producer surplus when the price rises from P1 to P2 due to new producers entering the market?
DGH
Table 7-1 Buyer | Willingness To Pay Lori | $50.00 Audrey | $30.00 Zach | $20.00 Calvin | $10.00 Refer to Table 7-1. If the price of the product is $22, then who would be willing to purchase the product?
Lori and Audrey
Table 7-1 Buyer | Willingness To Pay Lori | $50.00 Audrey | $30.00 Zach | $20.00 Calvin | $10.00 Refer to Table 7-1. If the price of the product is $15, then who would be willing to purchase the product?
Lori, Audrey, and Zach
Refer to Figure 7-2. When the price rises from P1 to P2, consumer surplus
decreases by an amount equal to B+C.
A consumer's willingness to pay directly measures
how much a buyer values a good.
Refer to Figure 7-15. If the government imposes a price floor of $60 in this market, then total surplus will be
lower by $62.50 than it would be without the price floor.
Willingness to pay
measures the value that a buyer places on a good.
Table 7-1 Buyer | Willingness To Pay Lori | $50.00 Audrey | $30.00 Zach | $20.00 Calvin | $10.00 Refer to Table 7-1. If the price of the product is $51, then who would be willing to purchase the product?
no one
Consumer surplus is
the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
Producer surplus is
the amount a seller is paid minus the cost of production.
