LearningCurve Chapter 4: Consumer and Producer Surplus

Question Value: 25 points The table shows the individual sellers' costs of selling a 3-course taco dinner. If the price of a dinner is $25, Burrito Boy's producer surplus is: $0. $15. $25. $100.

$15.

Suppose that the willingness to pay of several fans for Duck football tickets is shown in the table below. If the price of a ticket is $35, Bonnie's consumer surplus is (in a numeral/numerals) $_____.

5

Suppose that the willingness to pay of several fans for Duck football tickets is shown in the table below. If the price of a ticket is $50, Claudia's consumer surplus is (in a numeral/numerals) $_____.

5

The graph shows the schedule for hours of tutoring in economics. Suppose that Pat is willing to work as a tutor for $15 per hour and Kim is willing to tutor for $7.50 per hour. If Pat is forced to tutor and Kim is not allowed to tutor, producer surplus will decrease by, in numerals, $_____.

7.50

True or False: If the price is held below equilibrium, market efficiency increases. This is _____. False True

False

True or False: When the price of a product decreases, consumer surplus decreases. This is _____. False True

False

True or False: When the price of a product increases, producer surplus decreases. This is _____. False True

False

The graph shows the schedule for hours of tutoring in economics. If the price decreases from $10 to $5, producer surplus for the market: decreases by $125. decreases by $1000. decreases by $2750. decreases by $2500.

decreases by $1000.

Suppose that the willingness to pay of several fans for Duck football tickets is shown in the table below. If the price of a ticket decreases from $60 to $50, consumer surplus will: increase by $25. increase by $10. decrease by $25. increase by $110.

increase by $25.

Total producer surplus is the: cost of the product times the amount sold. sum of the individual producer surpluses of all of the sellers of a good in the market. amount by which the cost of the product exceeds the market price. difference between the quantity supplied and the quantity demanded at the equilibrium price.

sum of the individual producer surpluses of all of the sellers of a good in the market.

Each customer's willingness to pay for a designer scarf is presented in the table below. If the price if a scarf is $1200, total consumer surplus is: $1200. $1500. $1800. $3600.

$1800.

The following table presents each consumer's willingness to pay for a Segway. How much benefit does Ryan expect to receive from a Segway? $0 $5400 $7000 $4900

$4900

The table shows the individual sellers' costs of selling a 3-course taco dinner. If the price of a dinner is $25, total producer surplus is, in numerals, $_____.

49

The table shows the individual sellers' costs of selling a 3 course taco dinner. If the price of a dinner is $25, Taco Loco's producer surplus is, in numerals, $_____.

10

Each bakery's cost of producing a very large sheet cake is presented in the table. True or False: At a price of $230, total producer surplus is $30. This is _____. False True

False

Each customer's willingness to pay for a designer scarf is presented in the following table. True or False: If the price if a scarf is $400, no scarves will be purchased. This is _____.

False

Suppose that the demand schedule for hours of tutoring in economics is shown in the graph. If the price of tutoring decreases from $20 to $15, consumer surplus will _____ by $_____. increase; 5 increase by $3000 decrease; 5 increase; 750

increase; 750

Which of the following is NOT a cause of market failure? one party preventing mutually beneficial trades property rights and price signals externalities goods not suitable for efficient management by markets.

property rights and price signals

The table shows the individual seller costs of selling Krispy Kreme Doughnuts for a fundraiser. If the price is $9, Alpha Chi Omega's producer surplus is: $4. $7. $27. $8.

$7.

Suppose that the demand schedule for hours of tutoring in economics is shown in the graph. If the price of tutoring decreases from $20 to $10, the consumer surplus of the new buyers is, in numerals, $_____.

1,000

The graph represents the market for hours of tutoring in economics at a large university. At the equilibrium price and quantity, producer surplus is, in numerals, $_____.

1,125

The graph shows the schedule for hours of tutoring in economics. If the price increases from equilibrium at $10 to $15, consumer surplus for the market will decrease by, in numerals, $_____.

1,250

The graph shows the schedule for hours of tutoring in economics. If the price increases from equilibrium at $10 to $20, total surplus for the market will decrease by, in numerals, $_____.

1,500

Each customer's willingness to pay for a designer scarf is presented in the following table. Emily expects to receive, in numerals, $_____ of benefit from purchasing a scarf.

1000

The table shows the individual seller costs of selling Krispy Kreme Doughnuts for a fundraiser. If the price decreases from $11 to $5, producer surplus decreases by, in numerals, $_____.

16

Each bakery's cost of producing a very large sheet cake is presented in the table. At a price of $230, _____ bakeries will sell a cake.

2

The graph shows the schedule for hours of tutoring in economics. If the price of tutoring decreases from $15 to $10, producer surplus decreases by, in numerals, $_____.

2,000

Suppose that the demand schedule for hours of tutoring in economics is shown in the graph. If the price of tutoring decreases from $20 to $10, consumer surplus will increase by, in numerals, $_____.

2000

The graph shows the schedule for hours of tutoring in economics. If the price increases from equilibrium at $10 to $20, consumer surplus for the market will decrease by, in numerals, $_____.

2000

The table shows the individual sellers' costs of selling a 3-course taco dinner. If the price of a dinner decreases from $19 to $9, total producer surplus decreases by, in numerals, $ _____.

23

Suppose that the demand schedule for hours of tutoring in economics is shown below. If the price of an hour of tutoring is $20, total consumer surplus is, in numerals, $_____.

250

Each customer's willingness to pay for a designer scarf is presented in the following table. If the price if a scarf is $1600, _____ scarves will be purchased.

3

The table shows the individual sellers' costs of selling a 3-course taco dinner. If the price of a dinner is $15, how many vendors will sell taco dinners? 4 2 1 3

3

The graph shows the schedule for hours of tutoring in economics. If the price of tutoring is $15 per hour, total producer surplus is, in numerals, $_____.

3,125

Question Value: 30 points Suppose that the willingness to pay of several fans for Duck football tickets is shown in the table below. If the price of a ticket is $35, Bonnie's consumer surplus is (in a numeral/numerals) $_____.

5

The table shows the individual sellers' costs of selling a 3-course taco dinner. If the price of a dinner is $30, _____ vendors will sell taco dinners.

5

Each bakery's cost of producing a very large sheet cake is presented in the table. At a price of $250, Angel Food's producer surplus is, in numerals, $_____.

50

The table shows fans' willingness to pay for Miley Cyrus tickets. True or False: If the price of a ticket increases from $120 to $150, consumer surplus will decrease by $60. This is _____. False True

True

The table shows the individual seller costs of selling Krispy Kreme Doughnuts for a fundraiser. True or False: If the price is $11, four organizations will sell doughnuts. This is _____.

True

True or False: A consumer's willingness to pay for a good is the maximum price at which he or she would buy that good. This is _____. True False

True

True or False: An economic signal is any piece of information that helps people make better economic decisions. This is _____. False True

True

True or False: Consumer surplus is the difference between the buyer's willingness to pay and the price actually paid. This is _____. False True

True

True or False: Producer surplus is the net gain to an individual seller from selling a good. This is _____. False True

True

True or False: The sum of the individual producer surpluses of all of the sellers of a good in the market is total producer surplus. True False

True

When someone pays too much for a used car, this is an example of market failure due to: one party preventing mutually beneficial trades. property rights and price signals. the market not accounting for all of the side effects of the activity. goods not suitable for efficient management by markets.

goods not suitable for efficient management by markets.

Suppose that the demand schedule for hours of tutoring in economics is shown in the graph. If the price of tutoring decreases from $20 to $15, consumer surplus will: decrease by $5. increase by $5. increase by $750. increase by $3000.

increase by $750. At $20, consumer surplus is $250 (1/2 x 100 x $5). At $15, consumer surplus is $1,000 (1/2 x $10 x200), so consumer surplus increases by $750.