ECON-1403 Chapter 7 Study Set
Refer to Table 7-5. The market quantity of oranges demanded per day is exactly 7 if the price of an orange, P, satisfies
$0.25<P<$0.60
Refer to Table 7-10. Suppose each of the five sellers can supply at most one unit of the good. The market quantity supplied is exactly 2 if the price is
$1,050.
Refer to Figure 7-19. At the equilibrium price, consumer surplus is
$100.
Refer to Figure 7-1. The value of the good to consumers minus the cost of the good to consumers amounts to $325 if the price of the good is
$125.
Refer to Table 7-1. If price of the product is $135, then the total consumer surplus is
$15.
Refer to Table 7-1. If the price of the product is $135, then the total consumer surplus is
$15.
Refer to Figure 7-18. If total surplus is $240 and consumer surplus is
$160, then the price of the good is $100.
Refer to Figure 7-2. If the price of the good is $80, then consumer surplus amounts to
$185.
Refer to Figure 7-13. If the equilibrium price is $60, what is the producer surplus?
$2,400
Refer to Figure 7-1. If the price of the good is $150, then consumers surplus amounts to
$250.
Refer to Figure 7-19. At the equilibrium price, total surplus is
$250.
Refer to Figure 7-19. If the government imposes a price ceiling of $55 in this market, then total surplus will be
$250.00
Refer to Figure 7-18. Total surplus amounts to $500 if consumer surplus amounts to
$290 and if the price of the good is $150.
Refer to Table 7-5. If the market price of an orange is $0.65, then consumer surplus amounts to
$3.60.
Refer to Table 7-10. If the market price is $1,000, the producer surplus in the market is
$300.
Refer to Table 7-10. If the market price is $1,100, the combined total cost of all participating sellers is
$4,000.
Refer to Figure 7-13. If the equilibrium price rises from $60 to $120, what is the additional producer surplus to initial producers in the market?
$4,800
Refer to Figure 7-19. If the government imposes a price floor of $55 in this market, then total surplus will be
$62.50 lower than it would be without the price floor.
Refer to Table 7-5. If the market price of an orange is $0.70, then the market quantity of oranges demanded per day is
6.
Producer surplus equals
Amount received by sellers - Costs of sellers.
Refer to Table 7-1. If the price of the product is $110, then who would be willing to purchase the product?
Calvin, Sam, and Andrew
Refer to Table 7-10. If the price is $1,150, who would be willing to supply the product?
Carlos, Dianne, and Evaline.
All else equal, what happens to consumer surplus if the price of a good decreases?
Consumer surplus increases.
Refer to Table 7-10. If the price is $1,000.
Evaline's producer surplus is $100.
Refer to Table 7-1. If the market price is $105,
Sam's consumer surplus is $30 and total consumer surplus is $90.
Consumer surplus is equal to the
Value to buyers - Willingness to pay of buyers.
A seller's willingness to sell is
a) measured by the seller's cost of production b) related to her supply curve, just as a buyer's willingness to buy is related to his demand curve c) less than the price received if producer surplus is a positive number d) All of the above Answer: d) All of the above
Producer surplus is the
area under the supply curve to the left of the amount sold.
Refer to Figure 7-1. If the price of the good is $200, then
consumer surplus is $150.
Refer to Table 7-5. If the market price of an orange increases from $0.80 to $1.05, then consumer surplus
decreases by $0.95.
Consumer surplus
is measured using the demand curve for a product.
Consumer surplus
measures the benefit buyers receive from participating in a market.
Cost is a measure of the
seller's willingness to sell
Producer surplus is
the amount a seller is paid minus the cost of production
Producer surplus directly measures
the well-being of sellers.
Total surplus is equal to
value to buyers - cost to sellers.