ECON 4

(Table: Consumer Surplus and Phantom Tickets) According to the information in the table, if the price of a ticket to see Phantom of the Opera is $50, then Robert's consumer surplus is:

$10.

(Figure: Consumer Surplus) In the figure Consumer Surplus, total consumer surplus is ________ when the price is $10.

$124

(Figure: Monthly Supply of Bread) The graph represents the monthly supply of bread at a local bakery. At the current price of $3 per loaf, the bakery sells 120 loaves of bread per month. The producer surplus received by this bakery is equal to:

$180.

(Table: Consumer Surplus and Phantom Tickets) If the box-office price of a ticket to see Phantom of the Opera is $130 and there is no other market for tickets, the total consumer surplus for the five students is:

$20.

(Table: Consumer Surplus and Phantom Tickets) If the box-office price of a ticket to see Phantom of the Opera is $50 and there is no other market for tickets, then total consumer surplus for the five students is:

$240.

(Figure: Market for Sandwiches) In the market for sandwiches during the lunch hour at a local deli, suppose a price floor is set at $7. At this price, consumer surplus is equal to ________ and producer surplus is equal to ________.

$32; $40

Table: Producer Surplus and Phantom Tickets) Given the information in the table, if the price for Phantom tickets is $140 and there is no other market for tickets, total producer surplus for these five students is:

$379.

(Figure: Monthly Demand for Ice Cream Cones) The graph represents one individual's monthly demand for ice cream cones. At a price of $5 per cone, this individual will consume 10 cones in a month. How much consumer surplus does this consumer receive?

$50

(Figure: Market for Sandwiches) The market for sandwiches during the lunch hour at a local deli is illustrated in the graph. At the competitive price of $5, 10 sandwiches are exchanged during the lunch hour. At this competitive price, consumer surplus equals ________ and producer surplus equals ________.

$50; $25

Figure: Gains from Trade) What is the total surplus in this market when the demand curve is D1?

$62.50

Jeanette is willing to pay $100 for the first pair of shoes, $80 for the second pair, $50 for the third, and $30 for the fourth. If shoes cost $50, Jeanette will buy ________ pairs of shoes and her total consumer surplus equals _____.

3; $80.

(Figure: Consumer Surplus II) At a price of P2, consumer surplus equals the area:

ABP2.

(Figure: Consumer Surplus II) At a price of P1, consumer surplus equals the area:

AFP1.

(Figure: Gain in Consumer Surplus) Which area(s) represent the gain in consumer surplus to consumers already participating in the market when the price falls from P1 to P2?

B

(Figure: Market I) If the government decides to restrict the quantity sold to 100, which of the following is not true?

Consumer surplus is maximized.

(Figure: Consumer Surplus) In the figure Consumer Surplus, when the price rises from $30 to $35, consumer surplus ________ for a total consumer surplus of ________.

DECREASES by $15; $34

Figure: Producer Surplus II) At a price of P1, producer surplus equals the area:

P1K0.

(Figure: Producer Surplus II) At a price of P2, producer surplus equals the area:

P2M0.

(Figure: Producer Surplus II) If the price falls from P2 to P1, producer surplus decreases by the area:

P2P1KM.

Table: Producer Surplus and Phantom Tickets) Given the information in the table, if the price for Phantom tickets is $55, which student has the highest individual producer surplus?

Tim

If the government imposes a price floor in the market for grapefruit, total surplus:

WILL DECREASE

Suppose apartments rent for $1,600 in Boston. If the city of Boston forces each landlord to charge $1,200, there will be:

an increase in consumer surplus for Bostonians who can find apartments for $1,200.

All else equal, if a price floor is imposed on a market that has reached a competitive equilibrium price:

consumer surplus will fall and producer surplus will rise.

In many parts of the United States, when Walmart opens a new store, some smaller retailers go out of business. One of the reasons for this development could be that:

consumers in those areas receive a larger consumer surplus from shopping at Walmart than from the smaller stores.

Along a given demand curve, an increase in the price of a good will:

decrease consumer surplus.

(Figure: Consumer and Producer Surplus) In the figure, if an effective price ceiling exists in this market, then producer surplus ________ and total surplus ________.

decreases; decreases

Consider the market for milkshakes. An increase in the consumer surplus may result from a(n) _______ in the __________ of milkshakes.

increase; supply

(Figure: Consumer Surplus) In the figure Consumer Surplus, when the price falls from $30 to $25, consumer surplus ________ for a total consumer surplus of ________.

increases by $15; $64

(Figure: Gains from Trade) As demand increases from D1 to D2, total surplus:

increases by $27.50.

(Table: Producer Surplus and Phantom Tickets) Given the information in the table, if these students can sell their Phantom tickets for only $5, then:

the total producer surplus for the five students will be $4.