Econ midterm 2

$4.50

4. Refer to Table 7-2. If the market price is $5.50, the consumer surplus in the market will be

$45, and Quilana, Wilbur, and Ming-la purchase the good

5. Refer to Table 7-3. If the price is $20, then consumer surplus in the market is

does not buy the dishwasher, and on her purchase she experiences a consumer surplus of $0

Denise values a stainless steel dishwasher for her new house at $500. The actual price of the dishwasher is $650. Denise

consumer surplus

On a graph, the area below a demand curve and above the price measures

the increase in producer surplus to those producers already in the market when the price increases from P1 to P2

Refer to Figure 7-15. Area A represents

$200

Refer to Figure 7-16. If the price of the good is $300, then producer surplus amounts to

Consumer surplus decreases

Suppose there is an early freeze in California that reduces the size of the lemon crop. What happens to consumer surplus in the market for lemons?

$3.75

Table 7-8 During the last two days, Chad purchased a latte from two different stores. The table below shows Chad's willingness to pay on each day and his consumer surplus from each purchase. Chad's Willingness to Pay | Chad's Consumer Surplus First Day $5.00 | $1.25 Second Day $4.00 | $0.75 Refer to Table 7-8. The price that Chad paid for a latte on the first day is

maximizes the combined welfare of buyers and sellers

The particular price that results in quantity supplied being equal to quantity demanded is the best price because it

demand curve and above the supply curve, up to the equilibrium quantity.

Total surplus is represented by the area below the a. demand curve and above the price. b. price and up to the point of equilibrium. c. demand curve and above the supply curve, up to the equilibrium quantity. d. demand curve and above the horizontal axis, up to the equilibrium quantity

how the allocation of resources affects economic well-being

Welfare economics is the study of

swag

look at review for problems 11 - 14