Micro Ch. 7 Practice Questions

$50.

Brock is willing to pay $400 for a new suit, but he is able to buy the suit for $350. His consumer surplus is

$20.

Chuck would be willing to pay $20 to attend a dog show, but he buys a ticket for $15. Chuck values the dog show at

$4.

If a consumer is willing and able to pay $20 for a particular good and if he pays $16 for the good, then for that consumer, consumer surplus amounts to

consumer does not purchase the good.

If a consumer places a value of $15 on a particular good and if the price of the good is $17, then theconsumer does not purchase the good.

consumer does not purchase the good.

If a consumer places a value of $20 on a particular good and if the price of the good is $25, then the

$360.

If the price decreases from $22 to $16 due to a shift in the supply curve, consumer surplus increases by

$10

Kelly is willing to pay $68 for a pair of shoes for a wedding. She finds a pair at her favorite outlet shoe store for $58. Kelly's consumer surplus is

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

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

$90.

Assume demand increases and as a result, equilibrium price increases to $22 and equilibrium quantity increases to 110. The increase in producer surplus due to new producers entering the market would be

$480.

Assume demand increases and as a result, equilibrium price increases to $22 and equilibrium quantity increases to 110. The increase in producer surplus to producers already in the market would be

$570.

Assume demand increases and as a result, equilibrium price increases to $22 and equilibrium quantity increases to 110. The increase in producer surplus would be

A+B+C.

At equilibrium, consumer surplus is represented by the area

D+H+F.

At equilibrium, producer surplus is represented by the area

A+B+C+D+H+F.

At equilibrium, total surplus is represented by the area

$480.

At the equilibrium price, consumer surplus is

$640.

At the equilibrium price, producer surplus is

$1,120.

At the equilibrium price, total surplus is

$8.

If Gina sells a shirt for $40, and her producer surplus from the sale is $32, her cost must have been

below the demand curve and above price.

On a graph, consumer surplus is represented by the area

$16, and the efficient quantity is 80.

The efficient price is

total surplus is maximized.

We can say that the allocation of resources is efficient if