econ 2100 chapter 7
Refer to Figure 7-18. At the equilibrium price, total surplus is
$1,120
Kelly is willing to pay $68 for a pair of shoes for a wedding. She finds a pair at her favorite outlet shoe store for $58. Kelly's consumer surplus is
$10
Refer to Figure 7-18. The efficient price is
$16, and the efficient quantity is 80
Chuck would be willing to pay $20 to attend a dog show, but he buys a ticket for $15. Chuck values the dog show at
$20
Refer to Figure 7-18. If the price decreases from $22 to $16 due to a shift in the supply curve, consumer surplus increases by
$360
If a consumer is willing and able to pay $20 for a particular good and if he pays $16 for the good, then for that consumer, consumer surplus amounts to
$4
Refer to Figure 7-18. Assume demand increases and as a result, equilibrium price increases to $22 and equilibrium quantity increases to 110. The increase in producer surplus to producers already in the market would be
$480
Refer to Figure 7-18. At the equilibrium price, consumer surplus is
$480
Brock is willing to pay $400 for a new suit, but he is able to buy the suit for $350. His consumer surplus is
$50
Refer to Figure 7-18. Assume demand increases and as a result, equilibrium price increases to $22 and equilibrium quantity increases to 110. The increase in producer surplus would be
$570
Refer to Figure 7-18. At the equilibrium price, producer surplus is
$640
If Gina sells a shirt for $40, and her producer surplus from the sale is $32, her cost must have been
$8
Refer to Figure 7-18. Assume demand increases and as a result, equilibrium price increases to $22 and equilibrium quantity increases to 110. The increase in producer surplus due to new producers entering the market would be
$90
Refer to Figure 7-19. At equilibrium, consumer surplus is represented by the area
A+B+C
Refer to Figure 7-19. At equilibrium, total surplus is represented by the area
A+B+C+D+H+F
Refer to Figure 7-19. At equilibrium, producer surplus is represented by the area
D+H+F
On a graph, consumer surplus is represented by the area
below the demand curve and above price
If a consumer places a value of $15 on a particular good and if the price of the good is $17, then the
consumer does not purchase the good
If a consumer places a value of $20 on a particular good and if the price of the good is $25, then the
consumer does not purchase the good
A drought in California destroys many red grapes. As a result of the drought, the consumer surplus in the market for red grapes
decreases, and the consumer surplus in the market for red wine decreases
We can say that the allocation of resources is efficient if
total surplus is maximized