Econ ch 7

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 $48. Kelly's consumer surplus is

$10

chuck would be willing to pay $20 to attend a dog show, but buys a ticket for $15. Chuck values the dog show at

$20

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

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

If Gina sells a shirt for $40, and her producer surplus from the sale is $32, her cost must have been

$8

On a graph consumer surplus is represented by the area

below the demand curve 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

A drought in CA destroys many red grapes, asa result, consumer surplus in the market for red grapes

decreases, and consumer surplus for red wine decreases

If a consumer places a value of $20 on a good and the price is $25 then the consumer

does not purchase that good

We can say the allocation of resources is efficient if

total surplus is maximized