Introductory Microeconomics Chapter 7 Quiz

Using the table, when the price is $3 per slice, Fred's producer surplus is

$150

Consider the national market for in-home child care in the accompanying graph. At 12 million hours, what is the size of the deadweight loss in this market?

$2

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

In the above figure, if the price of milk is $1.00 per gallon, the consumer surplus from the 4 millionth gallon of milk is ________ per gallon of milk.

$1.50

Consider the national market for in-home child care in the accompanying graph. At 8 million hours, what is the size of total economic surplus in this market?

$40

Refer to the Table above. If the price of the product is $18, then the total consumer surplus is

$46

Refer to the Table above. If the price of the product is $15, then who would be willing to purchase the product?

Lori, Audrey, and Zach

When the supply of a good increases and the demand for the good remains unchanged, consumer surplus

May increase, decrease, or remain unchanged.

A drought in California destroys many red grapes. As a result of the drought, the consumer surplus in the market for red grapes

decreases, and the consumer surplus in the market for red wine decreases.

Refer to Figure above. If the demand curve is D and the supply curve shifts from S' to S, what is the change in producer surplus? Producer surplus will

increase by $1,875