Microeconomics

In which of the following circumstances would a buyer be indifferent about buying a good? -The amount of consumer surplus the buyer would experience as a result of buying the good is zero -the price of the good is equal to the buyer's willingness to pay for the good -the price of the good is equal to the value the buyer places on the good -All of the above are correct

All of the above are correct

The particular price that results in quantity supplied being equal to quantity demanded is the best price because it -maximizes costs of the seller -maximizes tax revenue for the government -maximizes the combined welfare of buyers and sellers -minimizes the expenditure of buyers

Maximizes the combined welfare of buyers and sellers

Willingness to Pay -Measures the value that a buyer places on a good -is the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept -is the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept -is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

Measures the value that a buyer places on a good.

Produce Surplus =

Price - Cost

Consumer surplus is -the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it -the amount a buyer is willing to pay for a good minus the cost of producing the good -the amount by which the quantity supplied of a good exceeds the quantity demanded of the good -a buyer's willingness to pay for a good plus the price of the good.

The amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

Consumer surplus =

Willingness to Pay - Price

Suppose Raymond and Victoria attend a charity benefit and participate in a silent auction, Each has in mind a maximum amount that he or she will bid for an oil painting by a locally famous artist. this maximum is called

Willingness to pay

The maximum price that a buyer will pay for a good is called the

Willingness to pay

On a graph, consumer surplus is represented by the area -between the demand and supply curves -below the demand curve and above price -below the price and above the supply curve -below the demand curve and to the right of equilibrium price

between the demand and supply curves