ECON 102- B.2.4.2

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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 $58. Kelly's consumer surplus is

$10.

Refer to Figure 7-15. At the equilibrium price, producer surplus is

$100.

Refer to Figure 7-15. At the equilibrium price, consumer surplus is

$150.

Refer to Figure 7-15. If the government imposes a price floor of $60 in this market, then total surplus will be

$187.50.

Ivana produces cookies. Her production cost is $6 per dozen. She sells the cookies for $8 per dozen. Her producer surplus per dozen cookies is

$2.

Table 7-1 Buyer | Willingness To Pay Lori | $50.00 Audrey | $30.00 Zach | $20.00 Calvin | $10.00 Refer to Table 7-1. If price of the product is $30, then the total consumer surplus is

$20.

Refer to Figure 7-15. At the equilibrium price, total surplus is

$250.

Refer to Figure 7-15. If the government imposes a price ceiling of $60 in this market, then total surplus will be

$250.00.

Table 7-1 Buyer | Willingness To Pay Lori | $50.00 Audrey | $30.00 Zach | $20.00 Calvin | $10.00 Refer to Table 7-1. If the price of the product is $18, then the total consumer surplus is

$46.

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.

Table 7-7 The following table represents the costs of five possible sellers. Seller | Cost Abby | $1,500 Bobby | $1,200 Carlos | $1,000 Dianne | $750 Evalina | $500 Refer to Table 7-7. If the market price is $1,000, the producer surplus in the market is

$750.

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

$8.

Refer to Figure 7-2. When the price is P1, consumer surplus is

A+B+C.

Refer to Figure 7-2. When the price is P2, consumer surplus is

A.

Refer to Figure 7-8. When the price rises from P1 to P2, which area represents the increase in producer surplus to existing producers?

ABGD

Refer to Figure 7-8. Which area represents producer surplus when the price is P2?

ACH

Refer to Figure 7-8. Which area represents the increase in producer surplus when the price rises from P1 to P2?

AHGB

A seller's willingness to sell is

All of the above are correct.

Refer to Figure 7-8. Which area represents producer surplus when the price is P1?

BCG

Refer to Figure 7-8. Which area represents the increase in producer surplus when the price rises from P1 to P2 due to new producers entering the market?

DGH

Table 7-1 Buyer | Willingness To Pay Lori | $50.00 Audrey | $30.00 Zach | $20.00 Calvin | $10.00 Refer to Table 7-1. If the price of the product is $22, then who would be willing to purchase the product?

Lori and Audrey

Table 7-1 Buyer | Willingness To Pay Lori | $50.00 Audrey | $30.00 Zach | $20.00 Calvin | $10.00 Refer to Table 7-1. If the price of the product is $15, then who would be willing to purchase the product?

Lori, Audrey, and Zach

Refer to Figure 7-2. When the price rises from P1 to P2, consumer surplus

decreases by an amount equal to B+C.

A consumer's willingness to pay directly measures

how much a buyer values a good.

Refer to Figure 7-15. If the government imposes a price floor of $60 in this market, then total surplus will be

lower by $62.50 than it would be without the price floor.

Willingness to pay

measures the value that a buyer places on a good.

Table 7-1 Buyer | Willingness To Pay Lori | $50.00 Audrey | $30.00 Zach | $20.00 Calvin | $10.00 Refer to Table 7-1. If the price of the product is $51, then who would be willing to purchase the product?

no one

Consumer surplus is

the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

Producer surplus is

the amount a seller is paid minus the cost of production.


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