microeconomics chapter 7 quiz

Jeff decides he would pay as much as $2,000 for a new laptop computer. He buys the computer and realizes a consumer surplus of $300. How much did Jeff pay for his computer?

1,700

Refer to the graph. If thee equilibrium price rises from $200 to $350, what is the amount of new producer surplus that goes to existing producers?

15,000 Feedbaack Existing producers are the ones who already provided 100 units before the price change. So, the producer surplus going to these producers i the area of the rectangle between $200 and $350 for the 100 units: (350-200) * (100) = $150*100 = $15,000

Janine would be willing to pay $50 to see Les Miserables, but she buys a ticket for only $30. Janine's consumer surplus is

20

refer to the above graph. At the equilibrium price, total surplus is

700

refer to the graph. At the equilibrium price, producer surplus is

900

refer to the graph. When the price falls from P1 to P2, which area represents the increase in consumer surplus to new buyers entering the market?

ABC

Buyer Willingness to pay Calvin $150 Sam 135 Andrew 120 Lori 100 Refer to the above table. If the price of the product is $90, then who would be willing to purchase the product?

Calvin, Sam, Andrew, and Lori

Refer to the above figure, Total surplus in this market can be measured as the area

JNL

Refer to the graph. When the price is P1, area B+C represents

Total surplus

All else equal, what happens to consumer surplus if the price of a good increases?

consumer surplus decreases

When the demand for a good increases and the supply of the good remains unchanged, consumer surplus

may increase, decrease, or remain unchanged.

Total surplus in the market is equal to

value to buyers-cost to sellers