ECON 201 Chapter 7
Refer to Figure 7-12. If the equilibrium price is $200, what is the producer surplus?
$7,500
Refer to Figure 7-3. When the price is P2, consumer surplus is
A
Refer to Figure 7-19. At the equilibrium price, total surplus is
$250
The maximum price that a buyer will pay for a good is called
willingness to pay
Refer to Figure 7-3. When the price is P1, consumer surplus is
A+B+C
Refer to Figure 7-3. When the price rises from P1 to P2, which of the following statements is not true?
Buyers place a higher value on the good after the price increase.
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 Figure 7-3. When the price rises from P1 to P2, consumer surplus
decreases by an amount equal to B+C.
Welfare economics is the study of
how the allocation of resources affects economic well-being
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.
Refer to Figure 7-21. When the price is P1, area B+C represents
total surplus