7-1

Table 7-6 if the market price of an apple is $1.40 then the consumer surplus amounts to

$0.60

Figure 7-5 if the price of a good is $12 then consumer surplus is

$16

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

$20

Michael values a stainless steel refrigerator for his new house at $3,500, but he succeeds in buying one for $3,000. Michael's consumer surplus is Correct!

$500

Pat bought a new car for $15,500 but was willing to pay $24,000. The consumer surplus is

$8,500

If the government imposes a price ceiling of $80 in this market then , assuming those with the highest willingness to pay purchase the good , consumer surplus would be

1,500$

Figure 7-4 which area represents consumer surplus at a price of p2

AFG

Refer to Table 7-5. Who experiences the largest loss of consumer surplus when the price of an orange increases from $0.70 to $1.40?

Allison

Figure 7-4 when the price falls from P1 to P2which area represents the increase in consumer surplus to existing buyers

BCGD

Henry is willing to pay 45 cents and Janine is willing to pay 55 cents for 1 pound of bananas . When the price of bananas fall from 50 cents a found to 40 cents a pound

Both Janine and Henry experience an increase in consumer surplus

Table 7-1 If the price of the product is 110 then who would be willing to purchase the product

Calvin, Sam, Andrew

If the price of oak lumber increases what happens to consumer surplus in the market for oak cabinets

Consumer surplus decreases

Tavel 7-4 if you have a ticket that you sell to the group in an auction, who will buy the ticket

Lisa

Refer to Table 7-7. You have an extra ticket to the Midwest Regional Sweet 16 game in the men's NCAA basketball tournament. The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game. You hold an auction to sell the ticket. Who makes the winning bid, and what does he offer to pay for the ticket?

Michael; more than $400 but less than for equal too $500

Table 7-3 if the market price for the good is $20 who will purchase the good

Quilana, Wilbur, and Ming-la only