HW 6 ECOn

if the market price is $1200, the producer surplus in the market is

$800

if the price of the product is $130, then who would be willing to buy this product

Calvin and sam

if a consumer places a value of $20 on a particular good and if the price of the good is $25, then

consumer does not buy the good

total surplus in a market is equal to

consumer surplus + producer surplus

which of the following below will cause a decrease in producer surplus

income increases and buyers consider the good to be inferior

producer surplus is

the amount a seller is paid minus the cost of production

consumer surplus is equal to the

value to buyers minus the price paid by buyers

You are offered a free ticket to see the Chicago Cubs play the Chicago White Sox in the Wrigley Field. Assume that the ticket has no resale value. Willie Nelson is performing on the same night, and his concert is your next best alternative activity. Tickets to see Willie Nelson cost $40. On any given day, you would be willing to pay up to $50 to see and hear Willie Nelson perform. Assume there are no other costs of seeing either event. Based on this information, at a minimum, how much would you have to value seeing the Cubs play the White Sox to accept the ticket and go to the baseball game?

$10

Ryan buys a new tractor for $118,000. He receives consumer surplus of 13,000 on his purchase, Ryans willingness to pay is

$131,000

if the price of the product is $135, then the total consumer surplus is

$15

Bob is willing to pay $400 for a new suit, but he is able to buy the same suit for $250 at Macys, his consumer surplus is

$150

the following table represents the cost of five possible sellers. if market price is $1000, the producer surplus in the market is

$300

if mike sells a shirt for $40, and his producer surplus from the sale is $8, his cost must have been

$32

if the price of the product is $122, then the total consumer surplus is

$42

if the price of the product is $110, then who would be willing to buy this product?

Calvin, sam and Andrew

if the product is $90, then who would be willing to buy this product

Calvin, sam, Andrew, and lori

which of the following will cause an increase in consumer surplus

a technological improvement in the production of the goods

If a market is allowed to move freely to its equilibrium price and quantity, then an increase in supply will

increase consumer surplus

if the surgeon general announces that eating apples promote healthy teeth, as a result, the equilibrium price of apples

increases, and producer surplus increases

when the demand for a good increases and the supply of the good remains unchanged, then the consumer surplus in the market

may increase, decrease, or remain the unchanged