Exam 3 Review: 1 you dumb fart stick

The sum of producer surplus and consumer surplus is maximized.

Efficiency in a market is achieved when...

$6

George produces cupcakes. His production cost is $10 per dozen. He sells the cupcakes for $16 per dozen. His producer surplus per dozen cupcakes is...

c. the sum of consumer surplus and producer surplus is maximized.

If 6 units of the good are produces and sold, then.. a. consumer surplus is greater than producer surplus. b. producer surplus is maximized. c. the sum of consumer surplus and producer surplus is maximized. d. consumer surplus equals producer surplus.

b. $2,500

If the supply curve is S and the demand curve shifts from D to D', what is the increase in producer surplus to existing producers? a. $625 b. $2,500 c. $3,125 d. $5,625

Decreases

Oil is used to produce gasoline. If the price of oil increases, consumer surplus in the gasoline market..

Decrease consumer surplus in the market for steak an increase producer surplus in the market for chicken.

Steak and chicken are subsidies. A sharp reduction in the supply of steak would..

Any possible increase in producer surplus would be smaller than the loss of consumer surplus.

Suppose that the equilibrium price in the market for widgets is $5. If a law increased the minimum legal price for widgets to $6,

how the allocation of resources affects economic well-being.

Welfare economics is the study of..

a. 1

Suppose that Firms A and B each produce high-resolution computer monitors, but Firm A can do so at a lower cost. Cassie and David each want to purchase a high-resolution computer monitor, but David is willing to pay more than Cassie. If Firm B produces a monitor that David buys, then the market outcome illustrates which of the following principles? (i) Free markets allocate the supply of goods to the buyers who value them most highly, as measured by their willingness to pay. (ii) Free markets allocate the demand for goods to the sellers who can produce them at the least cost. a. 1 b. 2 c. both 1 and 2 d. neither 1 or 2

b. $300

Suppose the price of the good is $400. Then, on the first unit of the good that is sold, producer surplus amounts to.. a. $200 b. $300 c. $400 d. $450

140

If each producer has one unit available for sale, and if the market equilibrium price is $80 per unit, how much is the total producer surplus in this market? 90 110 130 140

The sum of consumer surplus and producer surplus could be increased by moving to a different allocation of resources.

If the current allocation of resources in the market for hammers is inefficient, then it must be the case that...

a. $7,500

If the equilibrium price is $200, what is the producer surplus? a. $7,500 b. $3,750 c. $10,000 d. $15,000

c. $600

If the government imposes a price floor of $110 in this market, then consumer surplus will decrease by.. a. $200 b. $400 c. $600 d. $800

d. Calvin, Sam, Andrew, and Lori

If the price of the product is $90, then who will be able to purchase the good? a. Calvin b. Calvin and Sam c. Calvin, Sam, and Andrew d. Calvin, Sam, Andrew, and Lori

$3,500

Micheal values a stainless steel refrigerator for his new house at $3,500, but he succeeds in buying one for $3,000. Micheal's willingness to pay is..

$131,000

Ray buys a new tractor for $118,800. He receives consumer surplus of $13,000 on his purchase. Ray's willingness to pay is...

removes a binding price ceiling from the market.

Total surplus in a market will increase when the government...

May increase,decrease, or remain unchanged

When demand for a good is increased and the supply of the good remains unchanged, consumer surplus..

d. $8.50

If the price of the good is $9.50, then the producer surplus is.. a. $3.00 b. $6.50 c. $10.50 d. $8.50

Alex experiences a decrease in consumer surplus, but Bella does not.

Alex is willing to pay$10, and Bella is willing to pay $8, for 1 pound of ribeye steak. When the price of ribeye steak increases from $9 to $11....

At Q4, the value to buyers is less than the cost to sellers.

At Q4, the value to buyers is less than the cost to sellers.

c. $20.50

If the price of the good is $14, then producer surplus is.. a. $19.50 b. $22.50 c. $20.50 d. $25.00

c. $187.00

If the government imposes a price floor of $55 in this market, then the total surplus will be.. a. $137.50 b. $125.00 c. $187.00 d. $275.00

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

If the government imposes a price floor of $55 in this market, then total surplus will be... a. $100.00 higher than it would be without the price floor. b. $50.00 lower than it would be without the price floor. c. $125.00 lower than it would be without the price floor. d. $62.50 lower than it would be without the price floor.

d. David and Laura

If the price of Vanilla Coke $6.90, who will purchase the good? a. All five individuals. b. Megan, Mallory, and Audrey. c. David, Laura, and Megan. d. David and Laura

d. $125

If the price of the good is $100, then consumer surplus amounts to.. a. $50 b. $75 c. $100 d. $125

Increase consumer surplus in the market for tomato sauce and increase the producer surplus in the market for spaghetti noodles.

Tomato sauce and spaghetti noodles are complementary goods. A decrease in the price of tomatoes will..

NONE OF THE ABOVE

When the price is p1, are A represents... NONE OF THE ABOVE

B. Some buyers exit the market.

Which of the following is true when the price of a good or service rises? A. Buyers who were already buying the good or service are better off. B. Some buyers exit the market. C. The total consumer surplus in the market increases. D. The total value of purchase before and after the price change is the same.