Econ 201: Hw 1

Refer to the figure. (question 10 attempt 1) At a price of $200, consumer surplus is: A. $200. B. $10,000. C. $40,000. D. $20,000.

B. 10,000

Refer to the figure (question 3 first attempt) In the figure, the initial supply curve is S1. Producers engage in market speculation with the belief that the price of the good will increase in the near future. This would be represented in the figure by shifting the: A. supply curve to S3, resulting in a higher quantity supplied at each price. B. supply curve to S2, resulting in a higher quantity supplied at each price. C. supply curve to S2, resulting in a lower quantity supplied at each price. D. supply curve to S3, resulting in a lower quantity supplied at each price

C. supply curve to S2...

Producer surplus is: A. the amount at which producers are willing to sell a good plus the amount at which they sell it. B. the amount at which producers sell a good. C. the difference between the market price and the minimum price at which producers are willing to sell a good. D. the amount at which producers are willing to sell a good.

C. the difference the market price...

Nigeria receives $53 of producer surplus from each barrel of oil sold at $60. At that level of production, Nigeria's cost to produce a barrel of oil is: A. $113. B. $1.13. C. $53. D. $7.

D. 7

In the diagram, for a market price of $4 total consumer surplus equals: (q 13 attempt 1) A. $30. B. $100. C. $60. D. $75.

a

Alex and Tyler enjoy the food at a restaurant named China Star. Alex values a meal there at $15 and Tyler values it at $26. If the restaurant charges only $10 a meal, what is Alex and Tyler's joint consumer surplus from a meal at China Star? A. $21 B. $41 C. $16 D. $31

a. 21

Refer to the figure (question 2 first attempt) What is the producer surplus at a price of $2 per unit? a. 10 b. 5 c. 20 d. 6

b. 5

Refer to the table (question 5 first attempt) Which country is earning the most producer surplus at a market price of $35 per barrel of oil? a. Country A b. Country Y c. Country Z d. Country X

b. Country Y

Refer to the figure. (question 11 attempt 1) What would cause the supply curve to shift from S1 to S2? A. a $20 tax reduction on each unit of output B. a $20 subsidy reduction on each unit of output C. a $40 tax reduction on each unit of output D. a $40 subsidy reduction on each unit of output

b. a 20 subsidy reduction on each unit of output

An increase in a per unit production tax ______ supply A. increases B. decreases C. changes in an indeterminate direction D. does not change

b. decreases

A decrease in production costs at any given quantity _____ supply a. decreases b. increases c. does not change d. may increase or decrease

b. increases

A decrease in demand refers to: A. a downward movement along the demand curve. B. a rightward shift of the demand curve. C. an upward movement along the demand curve. D. a leftward shift of the demand curve.

d

From the figure, the maximum price that consumers are willing to pay for _____ units of Good X is _____ per unit. (question 12 attempt 1) A. 11; $4 B. 36; $12 C. 26; $4 D. 36; $4

d.

Refer to the figure. If the price of potatoes is $8 a pound, what is the consumer surplus received? (q15 attempt 1) A. $30,000 B. $60,000 C. $360,000 D. $240,000

d.

A change in which factor would shift the supply curve? A. the demand for the product B. the willingness of consumers to pay C. the price of the good being sold D. production technology

d. production technology