CH 7

Ace your homework & exams now with Quizwiz!

https://cxp-cdn.cengage.info/protected/prod/assets/50/b/50bffeaf-1bcd-4c22-94d6-58d7d44c3152.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f50%2fb%2f50bffeaf-1bcd-4c22-94d6-58d7d44c3152.png*~hmac=3a40705a15609c17631ff12c6d8e5e4e0bc35354e4995e8b38338291fb748be1 Refer to the Figure. At the equilibrium price, total surplus is a.$320. b.$640. c.$200. d.$150

a.$320.

Suppose Aila and Vika attend a charity benefit and participate in a silent auction. Each has in mind a maximum amount that she will bid for a spa weekend at a resort. This maximum is called a.consumer surplus. b.social welfare. c.willingness to pay. d.social benefit.

c.willingness to pay.

https://cxp-cdn.cengage.info/protected/prod/assets/17/9/179c0a2e-5213-479d-98b2-aff552fc3d59.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f17%2f9%2f179c0a2e-5213-479d-98b2-aff552fc3d59.png*~hmac=7a4555842ac77c7b44e2a047970933c62b868db078aa83177722c20b6edafb05 Refer to the Table. If the market price of a cookie is $1.75, then consumer surplus amounts to a.$3.25. b.$7.50. c.$2.25. d.$0.50.

a.$3.25.

Suppose the demand for tea increases. What will happen to producer surplus in the market for tea? a.It increases. b.It decreases. c.It may increase, decrease, or remain unchanged. d.It remains unchanged.

a.It increases.

Clarence would be willing to pay $50 to attend an opera, but he buys a ticket for $45. Clarence values the opera at a.$45. b.$50. c.$15. d.$5.

b.$50.

https://cxp-cdn.cengage.info/protected/prod/assets/7b/a/7baa1128-ca1a-4106-8881-d0df3c22fe64.png?__gda__=st=1618817914~exp=1619422714~acl=%2fprotected%2fprod%2fassets%2f7b%2fa%2f7baa1128-ca1a-4106-8881-d0df3c22fe64.png*~hmac=34034cdf91a2e21e62bdf7a7692b609387a136cb47ab970da1e9863886da673f Refer to the Figure. At the equilibrium price, consumer surplus is a.$600. b.$800. c.$450. d.$40.

b.$800.

https://cxp-cdn.cengage.info/protected/prod/assets/7e/7/7e7df9e9-952d-4dd1-b3ec-1d07e2db6db1.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f7e%2f7%2f7e7df9e9-952d-4dd1-b3ec-1d07e2db6db1.png*~hmac=3974d83b8a7ecd8c36015225890da96eda2e5bd59b349a4344463ba142450c9c Refer to the Figure. When the price rises from P1 to P2, which area represents the increase in producer surplus to existing producers? a.HJMN b.HKN c.LMN d.HJML

d.HJML

The value of everything a seller must give up to produce a good is called producer surplus. True False

False

Refer to the Table. Both the demand curve and the supply curve are straight lines. At equilibrium, total surplus is a.$144. b.$288. c.$96. d.$48.

a.$144.

Refer to the Figure. If the price of the good is $60, then consumer surplus amounts to a.$80. b.$120. c.$30. d.$20.

a.$80.

Refer to the Figure. If the price of the good is $15, then producer surplus is a.$18. b.$21. c.$15. d.$12.

b.$21.

https://cxp-cdn.cengage.info/protected/prod/assets/c1/a/c1ab42e4-af8e-44c8-9c43-05aac90e5acb.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2fc1%2fa%2fc1ab42e4-af8e-44c8-9c43-05aac90e5acb.png*~hmac=8b27968637a432e63fc84513c6aa0dc78e6df417f88a66f4fa4d01c737d74357 Refer to the Figure. Which area represents the increase in consumer surplus when the price falls from P1 to P2? a.VXYW b.UXYW c.UVW d.UXZ

b.UXYW

Which of the following will cause an increase in producer surplus? a.income decreases and buyers consider the good to be normal b.the number of buyers in the market increases c.the price of a complement increases d.the imposition of a non-binding price floor in the market

b.the number of buyers in the market increases

c.$160.

If Imelda sells a pair of shoes for $85, and her producer surplus from the sale is $41, her cost must have been a.$126. b.We would have to know the consumer surplus in order to make this determination. c.$44. d.$41.

c.$44.

If the cost of producing flip-flops decreases, then consumer surplus in the flip-flop market will a.remain constant. b.increase for some buyers and decrease for other buyers. c.decrease. d.increase.

d.increase.

Refer to the Table. If the market price is $6.50, the combined total cost of all participating sellers is a.$17.59. b.$24.34. c.$15.25. d.$6.41.

a.$17.59.

https://cxp-cdn.cengage.info/protected/prod/assets/36/7/3671c1a4-7ad0-4030-bb99-c2123e63539c.jpg?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f36%2f7%2f3671c1a4-7ad0-4030-bb99-c2123e63539c.jpg*~hmac=4fd2cbca0a48b854c064d09efb65bec271e838750c8058128646a4f53febafd5 Refer to the Table. If the market price is $8, the producer surplus in the market is a.$7.66. b.$24.34. c.$6.75. d.$2.57.

a.$7.66.

Refer to the Figure. If the price decreases from $11 to $8 due to a shift in the supply curve, consumer surplus increases by a.$90. b.$120. c.$60. d.$30.

a.$90.

https://cxp-cdn.cengage.info/protected/prod/assets/b2/0/b20b0b03-5d20-4f48-ad57-0c9262c5b777.jpg?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2fb2%2f0%2fb20b0b03-5d20-4f48-ad57-0c9262c5b777.jpg*~hmac=36594880ee59797cc87f4a7ba2049df9a1101d15e1b65e7263523234199ea235 Refer to the Figure. If producer surplus is $42, then the price of the good is a.$18. b.$21. c.$15. d.$12.

b.$21.

Total surplus is represented by the area a.under the demand curve and above the price. b.between the demand and supply curves up to the point of equilibrium. c.to the right of the demand curve and to the left of the supply curve above the price. d.to the right of the supply curve and to the left of the demand curve below the price.

b.between the demand and supply curves up to the point of equilibrium.

https://cxp-cdn.cengage.info/protected/prod/assets/cb/f/cbffc7d3-5dcd-4a62-94f9-c9691b46a037.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2fcb%2ff%2fcbffc7d3-5dcd-4a62-94f9-c9691b46a037.png*~hmac=3e01e192bef5fe7f8e24f7e1415e47cf61a61d76e0c8a34b92e18f48c4ab7bb1 Refer to the Table. If ABC Corp., XYZ Inc., and Acme Products sell the good, and the resulting producer surplus is $5,700, then the price must have been a.$14,500. b.$16,000. c.$13,000. d.$12,000.

c.$13,000.

Refer the Table. If the market price of a cookie increases from $2.00 to $2.50, then consumer surplus a.decreases by $2.50. b.increases by $0.50. c.decreases by $2.00. d.decreases by $1.50.

d.decreases by $1.50.

https://cxp-cdn.cengage.info/protected/prod/assets/b2/0/b20b0b03-5d20-4f48-ad57-0c9262c5b777.jpg?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2fb2%2f0%2fb20b0b03-5d20-4f48-ad57-0c9262c5b777.jpg*~hmac=36594880ee59797cc87f4a7ba2049df9a1101d15e1b65e7263523234199ea235 Refer to the Figure. If the price of the good is $12, then producer surplus is a.$12. b.$18. c.$9. d.$3.

a.$12.

https://cxp-cdn.cengage.info/protected/prod/assets/07/9/07906cbf-ae35-4cea-9818-bf574cc7fcd5.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f07%2f9%2f07906cbf-ae35-4cea-9818-bf574cc7fcd5.png*~hmac=a22e7d10a6799f0966fa4941a1945bc740d985d8e520c96c86ad6f395488e40e Refer to the figure. When the price rises from $5 to $8, the additional producer surplus to initial producers is a.$18 and the producer surplus to new producers who enter because of the price increase is $9. b.$18 and the producer surplus to new producers who enter because of the price increase is $36. c.$36 and the producer surplus to new producers who enter because of the price increase is $18. d.$9 and the producer surplus to new producers who enter because of the price increase is $9.

a.$18 and the producer surplus to new producers who enter because of the price increase is $9.

https://cxp-cdn.cengage.info/protected/prod/assets/11/9/119320ad-bb88-45e2-9e7a-743e232ca3b8.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f11%2f9%2f119320ad-bb88-45e2-9e7a-743e232ca3b8.png*~hmac=a7f8dcf384ddefd4cf1449ee215bb4b2f885eea5ee1f4d42ccf5104c2d4903a8 Refer to the Figure. If the equilibrium price rises from $20 to $40, what is the additional producer surplus? a.$3,600 b.$4,800 c.$2,400 d.$1,200

a.$3,600

https://cxp-cdn.cengage.info/protected/prod/assets/50/b/50bffeaf-1bcd-4c22-94d6-58d7d44c3152.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f50%2fb%2f50bffeaf-1bcd-4c22-94d6-58d7d44c3152.png*~hmac=3a40705a15609c17631ff12c6d8e5e4e0bc35354e4995e8b38338291fb748be1 Refer to the Figure. If the government imposes a price ceiling of $48 in this market, then total surplus will be a.$320. b.$480. c.$240. d.$80.

a.$320.

https://cxp-cdn.cengage.info/protected/prod/assets/d0/c/d0c15ec6-3203-46ea-ad7c-c779ee2462b6.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2fd0%2fc%2fd0c15ec6-3203-46ea-ad7c-c779ee2462b6.png*~hmac=e11826239914f8ca787905b38ba54ddd6abb48f414d86b3451bbb687e42721d7 Refer to the Table. If there is only one unit of the good and if the buyers bid against each other for the right to purchase it, then the good will sell for a.$48 or slightly more. b.$56 or slightly less. c.$40 or slightly more. d.$32 or slightly less.

a.$48 or slightly more.

https://cxp-cdn.cengage.info/protected/prod/assets/36/7/3671c1a4-7ad0-4030-bb99-c2123e63539c.jpg?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f36%2f7%2f3671c1a4-7ad0-4030-bb99-c2123e63539c.jpg*~hmac=4fd2cbca0a48b854c064d09efb65bec271e838750c8058128646a4f53febafd5 Refer to the Table. Suppose each of the five sellers can supply at most one unit of the good. The market quantity supplied is exactly 4 if the price is a.$7.00. b.$9.00. c.$6.00 d.$5.00.

a.$7.00.

https://cxp-cdn.cengage.info/protected/prod/assets/3e/d/3ed16e9a-e50e-4126-bdba-323300678b68.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f3e%2fd%2f3ed16e9a-e50e-4126-bdba-323300678b68.png*~hmac=0bcf8bb6e192332bdab0b8c8da9cce59b811a3f2769c5fae9c3f9e936c95119e Refer to the Figure. The efficient price is a.$8, and the efficient quantity is 40. b.$4, and the efficient quantity is 20. c.$11, and the efficient quantity is 55. d.$11, and the efficient quantity is 20.

a.$8, and the efficient quantity is 40.

https://cxp-cdn.cengage.info/protected/prod/assets/53/c/53cbe5ba-8f01-4617-99fe-00f10fb38faa.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f53%2fc%2f53cbe5ba-8f01-4617-99fe-00f10fb38faa.png*~hmac=d2f1414157d942994f53e3fc1eaa7d5df90db40cae594e2e56f675fdd85a7f3c Refer to the Table. Both the demand curve and the supply curve are straight lines. At equilibrium, consumer surplus is a.$96. b.$192. c.$24. d.$12.

a.$96.

https://cxp-cdn.cengage.info/protected/prod/assets/17/9/179c0a2e-5213-479d-98b2-aff552fc3d59.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f17%2f9%2f179c0a2e-5213-479d-98b2-aff552fc3d59.png*~hmac=7a4555842ac77c7b44e2a047970933c62b868db078aa83177722c20b6edafb05 Refer to the Table. If the market price of a cookie is $2.35, then the market quantity of cookies demanded per day is a.3. b.4. c.2. d.1.

a.3.

Refer to the Table. If the market price of a cookie is $1.00, then the market quantity of cookies demanded per day is a.7. b.9. c.6. d.5

a.7.

https://cxp-cdn.cengage.info/protected/prod/assets/7e/7/7e7df9e9-952d-4dd1-b3ec-1d07e2db6db1.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f7e%2f7%2f7e7df9e9-952d-4dd1-b3ec-1d07e2db6db1.png*~hmac=3974d83b8a7ecd8c36015225890da96eda2e5bd59b349a4344463ba142450c9c Refer to the Figure. Which area represents the increase in producer surplus when the price rises from P1 to P2? a.HJMN b.HKN c.LMN d.HJML

a.HJMN

Which of the following will cause a decrease in consumer surplus? a.Sellers expect the price of the good to be higher next month. b.The imposition of a binding price ceiling in the market c.A decrease in the price of one of the inputs for the good d.An improvement in production technology for the good

a.Sellers expect the price of the good to be higher next month.

https://cxp-cdn.cengage.info/protected/prod/assets/57/a/57a7515c-f7b9-47a2-846d-18c984cbbab6.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f57%2fa%2f57a7515c-f7b9-47a2-846d-18c984cbbab6.png*~hmac=f7bdf9ac1ad117710e1ce9570eb7d1eddf14e7d28c6e4c4f7d895cec35417238 Refer to the figure. When the price falls from $45 to $35, consumer surplus a.increases by $300 from consumers who were already buying the good now paying a lower price. b.increases by $100 from new consumers entering the market. c.increases by $400 in total. d.decreases by $300 from consumers who were already buying the good now paying a lower price.

a.increases by $300 from consumers who were already buying the good now paying a lower price.

https://cxp-cdn.cengage.info/protected/prod/assets/3e/d/3ed16e9a-e50e-4126-bdba-323300678b68.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f3e%2fd%2f3ed16e9a-e50e-4126-bdba-323300678b68.png*~hmac=0bcf8bb6e192332bdab0b8c8da9cce59b811a3f2769c5fae9c3f9e936c95119e Refer to the Figure. If 55 units of the good are being bought and sold, then a.the marginal cost to sellers is greater than the marginal value to buyers. b.consumer surplus would be greater than producer surplus. c.the marginal value to buyers is greater than the marginal cost to sellers. d.the marginal cost to sellers is equal to the marginal value to buyers.

a.the marginal cost to sellers is greater than the marginal value to buyers.

Economists typically measure efficiency using a.total surplus. b.consumer surplus only. c.binding price floors. d.the equilibrium price.

a.total surplus.

Suppose your own demand curve for sweaters slopes downward. Suppose also that, for the last sweater you bought this week, you paid a price exactly equal to your willingness to pay. Then a.your consumer surplus on the last sweater you bought is zero. b.your consumer surplus on all of the sweaters you have bought this week is zero. c.you already have bought too many sweaters this week. d.you should buy more sweaters before the end of the week.

a.your consumer surplus on the last sweater you bought is zero.

Harvey mows lawns in his spare time for extra income. Buyers of his service are willing to pay $50 per lawn for as many lawns as Harvey is willing to mow. On a particular day, he is willing to mow the first lawn for $25, the second lawn for $30, the third lawn for $45, and the fourth lawn for $60. Assuming Harvey is rational in deciding how many lawns to mow, his producer surplus is a.$40. b.$50. c.$25. d.$10.

b.$50.

https://cxp-cdn.cengage.info/protected/prod/assets/d0/c/d0c15ec6-3203-46ea-ad7c-c779ee2462b6.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2fd0%2fc%2fd0c15ec6-3203-46ea-ad7c-c779ee2462b6.png*~hmac=e11826239914f8ca787905b38ba54ddd6abb48f414d86b3451bbb687e42721d7 Refer to the Table. Who experiences the largest loss of consumer surplus when the price of the good increases from $35 to $38? a.Marisol b.Alfredo, Padraig, and Marisol experience the same loss. c.Padraig d.Alfredo

b.Alfredo, Padraig, and Marisol experience the same loss.

https://cxp-cdn.cengage.info/protected/prod/assets/7e/7/7e7df9e9-952d-4dd1-b3ec-1d07e2db6db1.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f7e%2f7%2f7e7df9e9-952d-4dd1-b3ec-1d07e2db6db1.png*~hmac=3974d83b8a7ecd8c36015225890da96eda2e5bd59b349a4344463ba142450c9c Refer to the Figure. Which area represents producer surplus when the price is P1? a.HJML b.JKM c.LMN d.HKN

b.JKM

https://cxp-cdn.cengage.info/protected/prod/assets/b2/4/b24c1156-9117-43fb-9721-c8b0970a7f75.png?__gda__=st=1618817914~exp=1619422714~acl=%2fprotected%2fprod%2fassets%2fb2%2f4%2fb24c1156-9117-43fb-9721-c8b0970a7f75.png*~hmac=01ba8e374b96bc35b91e22e0421101a345c0dcbe916ba3670d42fd232d5d56b1 Refer to the figure. When the price rises from P1 to P2, which area represents the increase in producer surplus from new producers entering the market? a.JKM b.LMN c.HJMN d.HJLM

b.LMN

https://cxp-cdn.cengage.info/protected/prod/assets/d0/c/d0c15ec6-3203-46ea-ad7c-c779ee2462b6.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2fd0%2fc%2fd0c15ec6-3203-46ea-ad7c-c779ee2462b6.png*~hmac=e11826239914f8ca787905b38ba54ddd6abb48f414d86b3451bbb687e42721d7 Refer to the Table. If the market price for the good is $40, who will purchase the good? a.Marisol and Padraig only b.Marisol, Padraig, and Alfredo only c.Yan and Alfredo only d.Yan only

b.Marisol, Padraig, and Alfredo only

https://cxp-cdn.cengage.info/protected/prod/assets/74/2/7424582b-068f-46da-8a85-6e68567eaaa1.png?__gda__=st=1618817914~exp=1619422714~acl=%2fprotected%2fprod%2fassets%2f74%2f2%2f7424582b-068f-46da-8a85-6e68567eaaa1.png*~hmac=49f8fbf6a67fd3793a0e96d7cbbf7e47e19a50564a23a2b83234fde9f9acbf45 Refer to the Table. If the price of the product is $500, then who would be willing to purchase the product? a.Tessa, Joey, and John b.Tessa, Joey, John, and Helen c.Tessa and Joey d.Tessa

b.Tessa, Joey, John, and Helen

Consumer surplus is a good measure of economic welfare a.if policymakers are concerned about equity, but not efficiency. b.if policymakers want to respect the preferences of buyers. c.for those who only enter the market when the price of a substitute increases. d.because it accounts for the effects of price changes on buyers and sellers.

b.if policymakers want to respect the preferences of buyers.

https://cxp-cdn.cengage.info/protected/prod/assets/57/a/57a7515c-f7b9-47a2-846d-18c984cbbab6.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f57%2fa%2f57a7515c-f7b9-47a2-846d-18c984cbbab6.png*~hmac=f7bdf9ac1ad117710e1ce9570eb7d1eddf14e7d28c6e4c4f7d895cec35417238 Refer to the figure. When the price falls from $45 to $35, consumer surplus a.decreases by $50 from consumers who were already buying the good now paying a lower price. b.increases by $50 from new consumers entering the market. c.increases by $100 from new consumers entering the market. d.increases by $50 from consumers who were already buying the good now paying a lower price.

b.increases by $50 from new consumers entering the market.

https://cxp-cdn.cengage.info/protected/prod/assets/11/9/119320ad-bb88-45e2-9e7a-743e232ca3b8.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f11%2f9%2f119320ad-bb88-45e2-9e7a-743e232ca3b8.png*~hmac=a7f8dcf384ddefd4cf1449ee215bb4b2f885eea5ee1f4d42ccf5104c2d4903a8 Refer to the Figure. If the equilibrium price is $20, what is the producer surplus? a.$2,400 b.$4,800 c.$1,200 d.$120

c.$1,200

https://cxp-cdn.cengage.info/protected/prod/assets/cb/f/cbffc7d3-5dcd-4a62-94f9-c9691b46a037.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2fcb%2ff%2fcbffc7d3-5dcd-4a62-94f9-c9691b46a037.png*~hmac=3e01e192bef5fe7f8e24f7e1415e47cf61a61d76e0c8a34b92e18f48c4ab7bb1 Refer to the Table. If the sellers bid against each other for the right to sell the good to a consumer, then the producer surplus will be a.$2,700 or slightly less. b.$5,200 or slightly more. c.$1,200 or slightly less. d.$0 or slightly more.

c.$1,200 or slightly less.

https://cxp-cdn.cengage.info/protected/prod/assets/cb/f/cbffc7d3-5dcd-4a62-94f9-c9691b46a037.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2fcb%2ff%2fcbffc7d3-5dcd-4a62-94f9-c9691b46a037.png*~hmac=3e01e192bef5fe7f8e24f7e1415e47cf61a61d76e0c8a34b92e18f48c4ab7bb1 Refer to the Table. If the sellers bid against each other for the right to sell the good to a consumer, then the good will sell for a.$12,500 or slightly less. b.$15,000 or slightly more. c.$11,000 or slightly less. d.$9,800 or slightly more.

c.$11,000 or slightly less.

https://cxp-cdn.cengage.info/protected/prod/assets/d0/c/d0c15ec6-3203-46ea-ad7c-c779ee2462b6.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2fd0%2fc%2fd0c15ec6-3203-46ea-ad7c-c779ee2462b6.png*~hmac=e11826239914f8ca787905b38ba54ddd6abb48f414d86b3451bbb687e42721d7 Refer to the Table. If the price is $45, then consumer surplus in the market is a.$19, and Alfredo and Padraig purchase the good. b.$90, and Padraig and Marisol purchase the good. c.$14, and Marisol and Padraig purchase the good. d.$18, and Yan and Alfredo purchase the good.

c.$14, and Marisol and Padraig purchase the good.

Sam produces bracelets. His production cost is $12 per bracelet. He sells the bracelets for $28 each. His producer surplus per bracelet is a.$28. b.$32. c.$16. d.$12.

c.$16.

https://cxp-cdn.cengage.info/protected/prod/assets/29/6/296b5775-0a74-4b7e-8961-15b4798b960e.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f29%2f6%2f296b5775-0a74-4b7e-8961-15b4798b960e.png*~hmac=1e47b65376f7d4da18b39251ee1c4d3ffce30d6628fc04f9e4369fdb487273d2 Refer to the Figure. If the price of the good is $80, then consumer surplus amounts to a.$80. b.$160. c.$20. d.$10.

c.$20.

https://cxp-cdn.cengage.info/protected/prod/assets/50/b/50bffeaf-1bcd-4c22-94d6-58d7d44c3152.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f50%2fb%2f50bffeaf-1bcd-4c22-94d6-58d7d44c3152.png*~hmac=3a40705a15609c17631ff12c6d8e5e4e0bc35354e4995e8b38338291fb748be1Refer to the Figure. At the equilibrium price, consumer surplus is a.$320. b.$400. c.$200. d.$120

c.$200.

https://cxp-cdn.cengage.info/protected/prod/assets/a1/4/a148cea8-8224-4079-a666-143cf8d68067.jpg?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2fa1%2f4%2fa148cea8-8224-4079-a666-143cf8d68067.jpg*~hmac=7f7d07152cf2694c3627edae9fe332c57b2aa56747638c398f1f0a72175ba775 Refer to the Table. You wish to purchase a haircut, so you take bids from each of the sellers. You will not accept a bid below a seller's cost because you are concerned that the seller will not provide the haircut. What bid will you accept? a.$23 b.$35 c.$21 d.$19

c.$21

c.$280.

https://cxp-cdn.cengage.info/protected/prod/assets/7b/a/7baa1128-ca1a-4106-8881-d0df3c22fe64.png?__gda__=st=1618817914~exp=1619422714~acl=%2fprotected%2fprod%2fassets%2f7b%2fa%2f7baa1128-ca1a-4106-8881-d0df3c22fe64.png*~hmac=34034cdf91a2e21e62bdf7a7692b609387a136cb47ab970da1e9863886da673f Refer to the Figure. If the government imposes a price floor of $45 in this market, then consumer surplus will decrease by a.$450. b.$800. c.$350. d.$300.

c.$350.

c.$48.

Refer to the Figure. The value of the good to consumers minus the cost of the good to consumers amounts to $120 if the price of the good is a.$60. b.$65. c.$50. d.$40.

c.$50

c.ACE.

https://cxp-cdn.cengage.info/protected/prod/assets/74/2/7424582b-068f-46da-8a85-6e68567eaaa1.png?__gda__=st=1618817914~exp=1619422714~acl=%2fprotected%2fprod%2fassets%2f74%2f2%2f7424582b-068f-46da-8a85-6e68567eaaa1.png*~hmac=49f8fbf6a67fd3793a0e96d7cbbf7e47e19a50564a23a2b83234fde9f9acbf45 Refer to the Table. If the price of the product is $600, then who would be willing to purchase the product? a.Tessa, Joey, and John b.Helen, John, and Joey c.Tessa and Joey d.Helen and John

c.Tessa and Joey

https://cxp-cdn.cengage.info/protected/prod/assets/c1/a/c1ab42e4-af8e-44c8-9c43-05aac90e5acb.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2fc1%2fa%2fc1ab42e4-af8e-44c8-9c43-05aac90e5acb.png*~hmac=8b27968637a432e63fc84513c6aa0dc78e6df417f88a66f4fa4d01c737d74357 Refer to the Figure. When the price falls from P1 to P2, which area represents the increase in consumer surplus to new buyers entering the market? a.VXYW b.UXZ c.UVW d.WYZ

c.UVW

https://cxp-cdn.cengage.info/protected/prod/assets/c1/a/c1ab42e4-af8e-44c8-9c43-05aac90e5acb.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2fc1%2fa%2fc1ab42e4-af8e-44c8-9c43-05aac90e5acb.png*~hmac=8b27968637a432e63fc84513c6aa0dc78e6df417f88a66f4fa4d01c737d74357 Refer to the Figure. Which area represents consumer surplus at a price of P2? a.WVXY b.UVW c.UXZ d.WYZ

c.UXZ

If a consumer places a value of $37 on a particular good and if the price of the good is $40, then the a.market is not in equilibrium. b.demand for the good will fall. c.consumer does not purchase the good. d.consumer has consumer surplus of $3 if (s)he buys the good.

c.consumer does not purchase the good.

Suppose consumer income decreases. If carnations are an inferior good, the equilibrium price of carnations will a.decrease, and producer surplus in the industry will increase. b.increase, and producer surplus in the industry will decrease. c.increase, and producer surplus in the industry will increase. d.decrease, and producer surplus in the industry will decrease.

c.increase, and producer surplus in the industry will increase.

Suppose policymakers are considering a particular action in the market for heroin that would reduce consumer surplus. They may choose not to care about consumer surplus because a.willingness to pay does not ever reflect economic well-being. b.consumers are not the best judges of how much benefit they receive from the goods they buy. c.they do not respect the preferences that drive buyer behavior for that good. d.they do not respect consumers' preferences in any market.

c.they do not respect the preferences that drive buyer behavior for that good.

d.$120.

https://cxp-cdn.cengage.info/protected/prod/assets/d5/6/d56ca6b1-4ab7-4461-a5de-8dd2d635ef3f.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2fd5%2f6%2fd56ca6b1-4ab7-4461-a5de-8dd2d635ef3f.png*~hmac=e4fa50413cdb92ffe17aba6d4cf6879846d3cbfc642efb298a872d3c83154d31 Refer to the Figure. At the equilibrium price, producer surplus is a.$72. b.$96. c.$48. d.$36.

d.$36.

https://cxp-cdn.cengage.info/protected/prod/assets/11/9/119320ad-bb88-45e2-9e7a-743e232ca3b8.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f11%2f9%2f119320ad-bb88-45e2-9e7a-743e232ca3b8.png*~hmac=a7f8dcf384ddefd4cf1449ee215bb4b2f885eea5ee1f4d42ccf5104c2d4903a8 Refer to the Figure. If the equilibrium price is $40, what is the producer surplus? a.$1,200 b.$2,400 c.$9,600 d.$4,800

d.$4,800

If the production technology for smart televisions improves, what happens to consumer surplus in the market for smart televisions? a.Consumer surplus will not change; only producer surplus changes. b.Consumer surplus depends on what event led to the improvement in production technology. c.Consumer surplus decreases. d.Consumer surplus increases.

d.Consumer surplus increases.

https://cxp-cdn.cengage.info/protected/prod/assets/7e/7/7e7df9e9-952d-4dd1-b3ec-1d07e2db6db1.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f7e%2f7%2f7e7df9e9-952d-4dd1-b3ec-1d07e2db6db1.png*~hmac=3974d83b8a7ecd8c36015225890da96eda2e5bd59b349a4344463ba142450c9c Refer to the Figure. Which area represents producer surplus when the price is P2? a.HJML b.JKM c.LMN d.HKN

d.HKN

https://cxp-cdn.cengage.info/protected/prod/assets/dc/e/dce18372-66af-42c9-97e8-aa3a023df094.jpg?__gda__=st=1618817914~exp=1619422714~acl=%2fprotected%2fprod%2fassets%2fdc%2fe%2fdce18372-66af-42c9-97e8-aa3a023df094.jpg*~hmac=db6df9c90597a95266842092a715c52095606b1df2432141c56ba6d29cc1dfcc Refer to the Table. Who is a marginal seller when the price is $6.75? a.Ming, Kenzie, and Adriana b.Ming, Kenzie, Adriana, and Julia c.Adriana and Julia d.Julia

d.Julia

https://cxp-cdn.cengage.info/protected/prod/assets/36/7/3671c1a4-7ad0-4030-bb99-c2123e63539c.jpg?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f36%2f7%2f3671c1a4-7ad0-4030-bb99-c2123e63539c.jpg*~hmac=4fd2cbca0a48b854c064d09efb65bec271e838750c8058128646a4f53febafd5 Refer to the Table. If the price is $6.25, who would be willing to supply the product? a.Julia, Adriana, and Kenzie b.Adriana, Kenzie, and Ming c.Kashawn, Julia, and Adriana d.Kenzie and Ming

d.Kenzie and Ming

https://cxp-cdn.cengage.info/protected/prod/assets/74/2/7424582b-068f-46da-8a85-6e68567eaaa1.png?__gda__=st=1618817914~exp=1619422714~acl=%2fprotected%2fprod%2fassets%2f74%2f2%2f7424582b-068f-46da-8a85-6e68567eaaa1.png*~hmac=49f8fbf6a67fd3793a0e96d7cbbf7e47e19a50564a23a2b83234fde9f9acbf45 Refer to the Table. If price of the product is $700, then who would be willing to purchase the product? a.Tessa, Joey, and John b.Helen, John, and Joey c.Tessa and Joey d.Tessa

d.Tessa

Refer to the Figure. Which area represents consumer surplus at a price of P1? a.WVXY b.UVW c.UXZ d.WYZ

d.WYZ

Celia manufactures backpacks for a living. Celia's out-of-pocket expenses (for fabric, zippers, etc.) plus the value that she places on her own time amount to her a.producer surplus. b.profit. c.efficiency level. d.cost of producing backpacks

d.cost of producing backpacks

https://cxp-cdn.cengage.info/protected/prod/assets/8f/b/8fb5fa97-4af2-4f39-9a9d-33ff678b828e.png?__gda__=st=1618817913~exp=1619422713~acl=%2fprotected%2fprod%2fassets%2f8f%2fb%2f8fb5fa97-4af2-4f39-9a9d-33ff678b828e.png*~hmac=de6d6f2d77d5168e18c40213ee33ba0228a5d5fb9ed7dbdc3824268c22872f9d Refer to the Figure. For quantities less than F, the value to the marginal buyer is a.unrelated to the cost to the marginal seller, so increasing the quantity does not affect total surplus. b.not measurable with the information provided. c.less than the cost to the marginal seller, so increasing the quantity increases total surplus. d.greater than the cost to the marginal seller, so increasing the quantity increases total surplus.

d.greater than the cost to the marginal seller, so increasing the quantity increases total surplus.

A major university study finds that drinking green tea has many health benefits. As a result, the equilibrium price of green tea a.decreases, and producer surplus increases. b.decreases, and producer surplus decreases. c.increases, and producer surplus decreases. d.increases, and producer surplus increases.

d.increases, and producer surplus increases.

Which of the following would not be considered a cost of Sheryl's Sweeties cupcake business? a.the cost of sugar, flour, and other baking materials b.the cost of pans, utensils, and other baking equipment c.the $15 per hour wage Sheryl could earn working at a different job if she didn't have her cupcake business d.the price buyers are willing to pay for Sheryl's cupcakes

d.the price buyers are willing to pay for Sheryl's cupcakes

Consumer surplus is the difference between the price buyers are willing to pay and the price which sellers are willing to sell. True False

False

Refer to the figure. When the price falls from $45 to $35, the increase in the benefit that buyers receive from the good, as the buyers themselves perceive it, is a.$50. b.$100. c.$300. d.$350.

d.$350.

The distinction between efficiency and equality can be described as follows: a.Efficiency refers to distributing the pie uniformly among members of society; equality refers to maximizing the size of the pie. b.Efficiency refers to the benevolent social planner; equality refers to individual buyers and sellers. c.Efficiency refers to maximizing the size of the pie; equality refers to distributing the pie uniformly among members of society. d.Efficiency refers to maximizing the equilibrium quantity; equality refers to minimizing the equilibrium price.

c.Efficiency refers to maximizing the size of the pie; equality refers to distributing the pie uniformly among members of society.

Refer to the figure. When the price falls from P1 to P2, which area represents the increase in consumer surplus from buyers who were already buying the good before the price decrease? a.WYZ b.UVW c.VXYW d.UXZ

c.VXYW

d.$120.

See all study sets

CH 7

Related study sets

BIS 111 Chapter 1

Exam 1 Saunder's questions (perioperative, fluid, and electrolytes)

STS 304 Exam 1

Chapter 4

Positive/Negative Reinforcement/Punishment Examples

Griffin Quizes

Conflict Resolution

Accounting Test 1

Astronomy 3 Chapter 3

Texas POL Chapter 8

ch. 17 culinary arts: grains, legumes, nuts, and seeds

A&P 4

Concepts of Fitness Final Exam

Security+ Chapter 8

Biomechaincs lecture 6 linear forces

Exam 4

CCNA 2 - Final Practice - Part 1 of 5

Managing Human Resources Chapter 6 Employee Selection

Lecture 6 - elbow muscles

Algebra Unit 3B Lesson 2