Economics 3

#108.) If Sharon values a good at $70, and the market price is $35, what is Sharon's consumer surplus?

$35

#133.)

...

#123.) One example of a development that allows suppliers to produce at lower costs is

Bovine Growth Hormone BGH

#110.) The difference between the height of the demand curve and a horizontal line drawn at the market price.

Consumer surplus for the marginal buyer at each quantity demanded

#109.) If Steve values a good at $25, and the market price is $35, what is Steve's consumer surplus?

Nothing, Steve does not purchase the good.

#118.) An outcome that maximizes total surplus satisfies the criterion of

Pareto efficiency

#105.) The height of the market demand curve at each point represents what?

The willingness to pay of the marginal buyer

#129.) What are the effects on total surplus from introduction of BGH?

Total surplus increased unambiguously.

#124.) By how much did BGH increase milk production?

between 10 and 15 percent

#120.) Any point to the right of the equilibrium quantity

cannot be achieved voluntarily

#107.) The benefit that consumers receive is known as

consumer surplus

#126.) Indicate the new equilibrium point in the market for cigarettes after an anti-smoking campaign.

down and to the left

#125.) Indicate the new equilibrium point after the introduction of BGH.

down and to the right

#131.) What do we employ to measure the size of the changes in prices and quantities as well as their direction?

elasticity

#130.) After the introduction of BGH, consumer surplus ________ and producer surplus ________.

increased unambiguously, changed ambiguously

#119.) Any point to the left of the equilibrium quantity

inefficient

#106.) The buyer who at a price is just indifferent between buying the good in question or not buying it is known as

marginal buyer

#113.) In terms of costs, the height of the supply curve represents what?

opportunity cost to the marginal seller

#132.) Measure of how much the quantity demanded responds to a change in price.

price elasticity of demand

The difference between the price and the opportunity cost is known as

producer surplus

#128.) Indicate the new equilibrium point if the consumers expect a shortage in the future, and suppliers expect prices to decrease in the future.

right

#122.) One of the defining characteristics of our modern economy is

technological progress

#116.) Total producer surplus is

the area between the market price and the supply curve

#114.) Define marginal seller

the seller who would leave the market if the price were any lower

#112.) The height of the supply curve at each quantity supplied represents

the willingness to supply of the marginal supply

#121.) A competitive market would achieve the same results as a market planner simply through what mechanisms?

through the self-interested actions of its participants, responding only to the signals provided by market price

#111.) Total area below the demand curve and above the market price is known as

total consumer surplus

#117.) What is total surplus?

total consumer surplus plus total producer surplus

#127.) Indicate the new equilibrium point for the milk market if the number of suppliers decreases, and the price of orange juice increases.

up