ECON #2

Brock is willing to pay $400 for a new suit, but he is able to buy the suit for $350. His consumer surplus is Select one: a. $50. b. $150. c. $350. d. $400.

A. $50

Refer to Table 7-5. If the market price of an orange is $1.20, consumer surplus amounts to Select one: a. $0.70. b. $1.10. c. $1.40. d. $5.00.

C. $ 1.40

For each of three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Alex, Barb, and Carlos are the only three buyers of oranges, and only three oranges can be supplied per day. First OrangeSecond OrangeThird OrangeAlex$2.00$1.50$0.75Barb$1.50$1.00$0.80Carlos$0.75$0.25$0Refer to Table 7-5. If the market price of an orange is $1.20, the market quantity of oranges demanded per day is Select one: a. 1. b. 2. c. 3. d. 4.

C. 3

Refer to Table 7-1. If the price of the product is $18, then the total consumer surplus is Select one: a. $38. b. $42. c. $46. d. $72.

C. 46

Refer to Table 4-1. Whose demand does not obey the law of demand a. Aaron's b. Angela's c. Austin's d. Alyssa's

C. Austin

Refer to Table 7-1. If the price of the product is $15, then who would be willing to purchase the product? Select one: a. Mike b. Mike and Sandy c. Mike, Sandy, and Jonathan d. Mike, Sandy, Jonathan, and Haley

C. Mike, Sandy, and Jonathan

Refer to Table 4-1. If these are the only four buyers in the market, then the market quantity demanded at a price of $1 is Select one: a. 4 units. b. 7.75 units. c. 14 units. d. 31 units.

D. 31 units

Refer to Figure 7-5. What is the consumer surplus if the price is $100? Select one: a. $400 b. $200 c. $250 d. $350

a. $400

Refer to Figure 7-2. Which area represents consumer surplus at a price of P1? Select one: a. ABC b. ACG c. BCDF d. DFG

a. ABC

Consumer surplus is Select one: a. the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it. b. the amount a buyer is willing to pay for a good minus the cost of producing the good. c. the amount by which the quantity supplied of a good exceeds the quantity demanded of the good. d. a buyers willingness to pay for a good plus the price of the good.

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

Pizza is a normal good if Select one: a. the demand for pizza rises when income rises. b. the demand for pizza rises when the price of pizza falls. c. the demand curve for pizza slopes downward. d. the demand curve for pizza shifts to the right when the price of burritos rises, assuming pizza and burritos are substitutes.

a. the demand for pizza rises when income rises.

Suppose scientists provide evidence that chocolate pudding increases the bad cholesterol levels of those who eat it. We would expect to see Select one: a. no change in the demand for chocolate pudding. b. a decrease in the demand for chocolate pudding. c. an increase in the demand for chocolate pudding. d. a decrease in the supply of chocolate pudding

b. a decrease in the demand for chocolate pudding.

On a graph, consumer surplus is represented by the area Select one: a. between the demand and supply curves. b. below the demand curve and above price. c. below the price and above the supply curve. d. below the demand curve and to the right of equilibrium price.

b. below the demand curve and above price.

If a consumer places a value of $15 on a particular good and if the price of the good is $17, then the Select one: a. consumer has consumer surplus of $2 if he or she buys the good. b. consumer does not purchase the good. c. market is not a competitive market. d. price of the good will fall due to market forces.

b. consumer does not purchase the good.

Refer to Figure 7-3. If the price of the good is $6, then consumer surplus is Select one: a. $24. b. $26. c. $36. d. $42.

c. $36

A consumers willingness to pay directly measures Select one: a. the extent to which advertising and other external forces have influenced the consumer's preferences. b. the cost of a good to the buyer. c. how much a buyer values a good. d. consumer surplus.

c. how much a buyer values a good.

Sarah buys a new MP3 player for $135. She receives consumer surplus of $25 on her purchase if her willingness to pay is Select one: a. $25. b. $110. c. $135. d. $160.

d. $160.

Refer to Figure 7-2. Which area represents the increase in consumer surplus when the price falls from P1 to P2? Select one: a. ABD b. ACG c. DFG d. DBAG

d. DBAG

A decrease in demand is represented by Select one: a. a movement downward and to the right along a demand curve. b. a movement upward and to the left along a demand curve. c. a rightward shift of a demand curve. d. a leftward shift of a demand curve.

d. a leftward shift of a demand curve.

Soup is an inferior good if Select one: a. the demand for soup falls when the price of a substitute for soup rises. b. the demand for soup rises when the price of soup falls. c. the demand curve for soup slopes upward. d. the demand for soup falls when income rises

d. the demand for soup falls when income rises