ECON-1403 Chapter 7 Study Set

Refer to Table 7-5. The market quantity of oranges demanded per day is exactly 7 if the price of an orange, P, satisfies

$0.25<P<$0.60

Refer to Table 7-10. Suppose each of the five sellers can supply at most one unit of the good. The market quantity supplied is exactly 2 if the price is

$1,050.

Refer to Figure 7-19. At the equilibrium price, consumer surplus is

$100.

Refer to Figure 7-1. The value of the good to consumers minus the cost of the good to consumers amounts to $325 if the price of the good is

$125.

Refer to Table 7-1. If price of the product is $135, then the total consumer surplus is

$15.

Refer to Table 7-1. If the price of the product is $135, then the total consumer surplus is

$15.

Refer to Figure 7-18. If total surplus is $240 and consumer surplus is

$160, then the price of the good is $100.

Refer to Figure 7-2. If the price of the good is $80, then consumer surplus amounts to

$185.

Refer to Figure 7-13. If the equilibrium price is $60, what is the producer surplus?

$2,400

Refer to Figure 7-1. If the price of the good is $150, then consumers surplus amounts to

$250.

Refer to Figure 7-19. At the equilibrium price, total surplus is

$250.

Refer to Figure 7-19. If the government imposes a price ceiling of $55 in this market, then total surplus will be

$250.00

Refer to Figure 7-18. Total surplus amounts to $500 if consumer surplus amounts to

$290 and if the price of the good is $150.

Refer to Table 7-5. If the market price of an orange is $0.65, then consumer surplus amounts to

$3.60.

Refer to Table 7-10. If the market price is $1,000, the producer surplus in the market is

$300.

Refer to Table 7-10. If the market price is $1,100, the combined total cost of all participating sellers is

$4,000.

Refer to Figure 7-13. If the equilibrium price rises from $60 to $120, what is the additional producer surplus to initial producers in the market?

$4,800

Refer to Figure 7-19. If the government imposes a price floor of $55 in this market, then total surplus will be

$62.50 lower than it would be without the price floor.

Refer to Table 7-5. If the market price of an orange is $0.70, then the market quantity of oranges demanded per day is

6.

Producer surplus equals

Amount received by sellers - Costs of sellers.

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 Table 7-10. If the price is $1,150, who would be willing to supply the product?

Carlos, Dianne, and Evaline.

All else equal, what happens to consumer surplus if the price of a good decreases?

Consumer surplus increases.

Refer to Table 7-10. If the price is $1,000.

Evaline's producer surplus is $100.

Refer to Table 7-1. If the market price is $105,

Sam's consumer surplus is $30 and total consumer surplus is $90.

Consumer surplus is equal to the

Value to buyers - Willingness to pay of buyers.

A seller's willingness to sell is

a) measured by the seller's cost of production b) related to her supply curve, just as a buyer's willingness to buy is related to his demand curve c) less than the price received if producer surplus is a positive number d) All of the above Answer: d) All of the above

Producer surplus is the

area under the supply curve to the left of the amount sold.

Refer to Figure 7-1. If the price of the good is $200, then

consumer surplus is $150.

Refer to Table 7-5. If the market price of an orange increases from $0.80 to $1.05, then consumer surplus

decreases by $0.95.

Consumer surplus

is measured using the demand curve for a product.

Consumer surplus

measures the benefit buyers receive from participating in a market.

Cost is a measure of the

seller's willingness to sell

Producer surplus is

the amount a seller is paid minus the cost of production

Producer surplus directly measures

the well-being of sellers.

Total surplus is equal to

value to buyers - cost to sellers.