Econ Second Midterm (Final)

Mark and Rasheed are at the bookstore buying new calculators for the semester. Mark is willing to pay $75 and Rasheed is willing to pay $100 for a graphing calculator. The price for a calculator at the bookstore is $65. How much is Mark's individual consumer surplus? a. $10 b. $25 c. $75 d. $35

a. $10

Ahmed is willing to mow lawns for $10 each, Boris is willing to mow lawns for $20 each, and Chelsea is willing to mow lawns for $30 each. If the going rate for lawn mowing is $21, what is the total producer surplus received by the three of them? Select one: a. $12 b. $42 c. 0 d. $3

a. $12

Natasha, Nelson, and Nikolai are all looking to buy flashlights for a camping trip. Natasha is willing to pay $4, Nelson is willing to pay $10, and Nikolai is willing to pay $20. If the actual price of a flashlight turns out to be $9, what is the total consumer surplus for these three shoppers? a. $12 b. 0 c. $26 d. $7

a. $12

Ahmed is willing to mow lawns for $10 each, Boris is willing to mow lawns for $20 each, and Chelsea is willing to mow lawns for $30 each. If the going rate for lawn mowing is $26, what is the total producer surplus received by the 3 of them? a. $22 b. $52 c. $18 d. 0

a. $22

Natasha, Nelson, and Nikolai are all looking to buy flashlights for a camping trip. Natasha is willing to pay $4, Nelson is willing to pay $10, and Nikolai is willing to pay $20. If the actual price of a flashlight turns out to be $16, what is the total consumer surplus for these 3 shoppers? a. $4 b. 0 c. $18 d. -$14

a. $4

Ahmed is willing to mow lawns for $10 each, Boris is willing to mow lawns for $20 each, and Chelsea is willing to mow lawns for $30 each. If the going rate for lawn mowing is $15, what is the total producer surplus received by the 3 of them? Select one: a. $5 b. $35 c. -$15 d. 0

a. $5

Aisha is willing to spend $15 for a haircut. If she finds a salon where the price of a haircut is only $10, she will receive ______ in consumer surplus from this transaction. a. $5 b. $0 c. $15 d. $10

a. $5

The going rent in the market for 1-bedroom apartments in your neighborhood is $800. If the government imposes a price ceiling of $400 in this market: a. Less people will rent apartments. b. More people will be willing to rent apartments at every price. c. More people will rent apartments. d. The same number of apartments will be rented

a. Less people will rent apartments.

The going rent in the market for 1-bedroom apartments in your neighborhood is $400. If the government imposes a price ceiling of $600 in this market: a. The same number of apartments will be rented b. More people will rent apartments. c. Less people will rent apartments. d. More people will be willing to rent apartments at every price.

a. The same number of apartments will be rented

The minimum wage, which sets a lower limit on the wages that workers can earn, is often above the equilibrium price. The minimum wage is an example of: a. a price floor. b. a price ceiling. c. a quota. d. an equilibrium price.

a. a price floor.

The minimum wage, which sets a lower limit on the wages that workers can earn, is often above the equilibrium price. The minimum wage is an example of: a. a price floor. b. a price ceiling. c. a quota. d. an equilibrium price.

a. a price floor.

An effective price floor would result in: a. a surplus of the good. b. a shortage of the good. c. a quantity control. d. an equilibrium price.

a. a surplus of the good.

Which of the following is an example of a black market? a. a tenant in a rent-controlled apartment subletting at a higher rent b. the purchase of an inferior radio at a department store c. waiting in line during the gasoline shortages of the 1970s d. the oil market

a. a tenant in a rent-controlled apartment subletting at a higher rent

Suppose the government sets a price floor of $2.85 per bushel on corn when the current price is $2.55. This price floor will: a. cause a surplus of corn. b. cause a shortage of corn. c. have no effect on the price of corn. d. increase the supply of corn.

a. cause a surplus of corn

If the price of a good falls while supply remains unchanged, then total producer surplus will ____________. a. decrease b. increase c. We can't say. d. remain unchanged

a. decrease

The current price in the market for cab rides in your neighborhood is $5.00/mile. If the government imposes a price ceiling of $2.50/mile in this market total surplus in this market will: a. decrease b. increase c. decrease first, and then increase d. not change

a. decrease

Oil is an input in the production of gasoline, and gasoline and cars are complements. A decrease in the price of oil will _________ the producer surplus in the market for cars. a. increase b. decrease c. not change d. first increase and then decrease

a. increase

The persistent unwanted surplus that results from a price floor creates inefficiencies that include all of the following except: a. inefficiently low quality. b. inefficient allocation of sales among sellers. c. wasted resources. d. the temptation to break the law by selling below the legal price.

a. inefficiently low quality

Which is not an inefficiency caused by price floors? a. inefficiently low quality b. inefficient allocation of sales among sellers c. wasted resources d. illegal activity

a. inefficiently low quality

A price ceiling will have no effect if: a. it is set above the equilibrium price. b. the equilibrium price is above the price ceiling. c. it is set below the equilibrium price. d. it creates a shortage.

a. it is set above the equilibrium price

A price ceiling is not effective if: Select one: a. it is set above the equilibrium price. b. the equilibrium price is above the price ceiling. c. it is set below the equilibrium price. d. it creates a shortage.

a. it is set above the equilibrium price.

A binding price ceiling is designed to: a. keep prices low. b. increase the quality of the good. c. prevent shortages. d. increase efficiency.

a. keep prices low.

Farmers in developing countries want the United States to reduce the subsidies that it gives to American farmers because subsidized agricultural products from the United States: a. lead to global agricultural surpluses and lower prices for developing country farmers. b. raise the world price of agricultural products. c. has led to a global shortage of agricultural products. d. has led to an increase in the demand for agricultural products from the developing world.

a. lead to global agricultural surpluses and lower prices for developing country farmers.

West African cotton farmers are very upset about the subsidies the U.S. government pays to American cotton farmers. One reason for this could be that subsidized cotton from the United States: a. leads to global cotton surpluses and lower prices for West African farmers. b. raises the world price of cotton. c. has led to a global shortage of cotton. d. has led to an increase in the demand for West African cotton.

a. leads to global cotton surpluses and lower prices for West African farmers.

The going rent in the market for 1-bedroom apartments in your neighborhood is $500. If the government imposes a price ceiling of $700 in this market total surplus in this market will: a. not change b. decrease c. decrease first, and then increase d. increase

a. not change

The going rent in the market for 1-bedroom apartments in your neighborhood is $500. If the government imposes a price ceiling of $700 in this market total surplus in this market will: a. not change b. increase c. decrease first, and then increase d. decrease

a. not change

In the rental housing market, landlords determine the number of units rented. If a price control is present in the market, this control must be a: a. price ceiling. b. price floor. c. quota. d. quantity control.

a. price ceiling.

Markets work because they allocate sales to the potential sellers who most value the right to sell a good, as indicated by their ability to produce the good at the lowest cost. This statement illustrates: a. producer surplus. b. deadweight loss. c. total surplus. d. consumer surplus.

a. producer surplus

A competitive market for cell phone chargers is currently in equilibrium. If the price is below the equilibrium price in the cell phone charger market, what will happen to producer surplus? a. producer surplus will fall. b. producer surplus will rise. c. the change in producer surplus is indeterminate. d. There will be no change to producer surplus.

a. producer surplus will fall.

Maximum total surplus in the market for chocolate occurs when: a. the market is in equilibrium. b. all consumers who value chocolate are able to buy chocolate. c. total net gain to producers is generated from trading in the market. d. all producers are able to sell their chocolate.

a. the market is in equilibrium

Maximum total surplus in the market for chocolate occurs when: a. the market is in equilibrium. b. all consumers who value chocolate are able to buy chocolate. c. all producers are able to sell their chocolate. d. total net gain to producers is generated from trading in the market.

a. the market is in equilibrium.

If the minimum wage is a binding price floor, then: a. the number of workers who want to work will be greater than the number of jobs available. b. the equilibrium wage will increase. c. there will be a job for everyone who is willing to work. d. business owners will hire more workers.

a. the number of workers who want to work will be greater than the number of jobs available.

If a price floor is imposed above the equilibrium price: a. the quantity supplied will be higher than it would be otherwise. b. the quantity demanded will be higher than it would be otherwise. c. demand will increase above what it would be otherwise. d. supply will decrease below what it would be otherwise.

a. the quantity supplied will be higher than it would be otherwise.

If the price is above the equilibrium price in the market for grapefruit, total surplus: a. will decrease. b. will increase. c. will not change. d. may change, but we cannot determine the change without more information.

a. will decrease.

If there is an increase in supply, total surplus: a. will increase. b. will decrease. c. may change, but we can't tell how. d. will remain the same.

a. will increase

Suppose you pay $8 to see Tom Cruise in his next movie. Suppose Mr. Cruise receives $21 million to work in this movie. This means that: a. you and Tom Cruise benefited from this transaction. b. Tom Cruise received a producer surplus of $21 million. c. you received a consumer surplus of $8. d. you would have been better off being more self-reliant in the movie market.

a. you and Tom Cruise benefited from this transaction.

You are willing to sell your coin collection for a minimum price of $1,000. You find a buyer who offers $1,200. In this transaction, you will receive ________ in producer surplus. a. $0 b. $200 c. $1,200 d. $1,000

b. $200

Aisha is willing to spend $13 for a haircut. If she finds a salon where the price of a haircut is only $10, she will receive ______ in consumer surplus from this transaction. a. $10 b. $3 c. $0 d. $13

b. $3

Aisha is willing to spend $16 for a haircut. If she finds a salon where the price of a haircut is only $12, she will receive ______ in consumer surplus from this transaction. a. $0 b. $4 c. $16 d. $12

b. $4

Aisha is willing to spend $15 for a haircut. If she finds a salon where the price of a haircut is only $10, she will receive ______ in consumer surplus from this transaction. Select one: a. $15 b. $5 c. $10 d. $0

b. $5

Mountain River Adventures offers whitewater rafting trips down the Colorado River. It costs the firm $100 for the first raft trip per day, $120 for the second, $140 for the third, and $160 for the fourth. If the market price for a raft trip was $120 but has now increased to $150, the gain in producer surplus is equal to: a. $20. b. $70. c. $80. d. $90.

b. $70

Ahmed is willing to mow lawns for $10 each, Boris is willing to mow lawns for $20 each, and Chelsea is willing to mow lawns for $30 each. If the going rate for lawn mowing is $18, what is the total producer surplus received by the three of them? a. -$6 b. $8 c. $38 d. 0

b. $8

Adie wants to take some online classes this semester. She is willing to pay $1,000 for the first class, $800 for the second, $700 for the third, and $500 for the fourth. If online classes cost $750, Adie will take ________ online classes and her consumer surplus will equal ________. a. 2; $400 b. 2; $300 c. 4; $600 d. 3; $350

b. 2; $300

Which of the following is a reason for governments imposing or maintaining price controls? a. Both consumers and producers benefit from price controls. b. It may be politically expedient to impose price controls that benefit influential voting groups. c. The government benefits from price controls. d. Price controls improve the efficiency of the market.

b. It may be politically expedient to impose price controls that benefit influential voting groups.

Which of the following is true when a market is in equilibrium and there is no outside intervention to change the equilibrium price? a. Inefficiency is maximized. b. No mutually beneficial trades are missed. c. Some mutually beneficial trades may be missed. d. Total surplus is minimized.

b. No mutually beneficial trades are missed.

If total surplus falls, which of the following must have occurred? a. There was an increase in demand and an increase in supply. b. There was a decrease in demand or a decrease in supply. c. There was an increase in demand or a decrease in supply. d. There was a decrease in demand and an increase in supply.

b. There was a decrease in demand or a decrease in supply.

A price ceiling is: a. a minimum price established by government intervention. b. a maximum price established by government intervention. c. the lowest price a producer will accept for a good. d. the highest price a consumer will pay for a good.

b. a maximum price established by government intervention.

A price ceiling is likely to result in: a. a persistent surplus, a transfer of surplus from producers to consumers, and deadweight loss. b. a persistent shortage, a transfer of surplus from producers to consumers, and deadweight loss. c. a persistent shortage, a transfer of surplus from consumers to producers, and no deadweight loss. d. a persistent surplus, a transfer of surplus from consumers to producers, and deadweight loss.

b. a persistent shortage, a transfer of surplus from producers to consumers, and deadweight loss.

Hugo Chávez is the current president of Venezuela. Venezuela is a major producer of oil products, which remain the keystone of Venezuela's economy. Suppose President Chávez enacts a government policy that reduces the customer price of gasoline sold at state-owned gas stations to 50% of the pre-policy price. In theory, this policy will result in the quantity of gasoline demanded to be ________ the quantity of gasoline supplied. a. equal to b. greater than c. less than d. greater than or equal to

b. greater than

One of the ways rent control is inefficient is that it leads to: a. higher-quality apartments. b. high opportunity costs associated with wasted time. c. markets that maximize total surplus. d. the construction of more apartments.

b. high opportunity costs associated with wasted time.

If the government imposes rent control: a. rent will be set at a price above the equilibrium price. b. it may result in some landlords leaving the business because they cannot cover costs. c. it will lead to rental units being higher in quality because landlords are guaranteed a high price. d. it will create a surplus of housing.

b. it may result in some landlords leaving the business because they cannot cover costs.

The going rent in the market for 1-bedroom apartments in your neighborhood is $500. If the government imposes a price ceiling of $700 in this market total surplus in this market will: a. increase b. not change c. decrease first, and then increase d. decrease

b. not change

A price that the government guarantees farmers will receive for a particular crop is a(n): a. price ceiling. b. price floor (price support). c. deficiency price. d. export price (export subsidy).

b. price floor (price support).

Maria wants to get rid of her bookshelf. She is willing to give it away for free but her neighbor offers to pay $30 for it. Maria experiences a: a. consumer surplus gain. b. producer surplus gain. c. consumer surplus loss. d. producer surplus loss.

b. producer surplus gain.

A competitive market for cell phone chargers is currently in equilibrium. If the price is below the equilibrium price in the cell phone charger market, what will happen to producer surplus? a. the change in producer surplus is indeterminate. b. producer surplus will fall. c. producer surplus will rise. d. There will be no change to producer surplus.

b. producer surplus will fall.

Rent controls set a price ceiling below the equilibrium price and therefore: a. quantity supplied exceeds the quantity demanded. b. quantity demanded exceeds the quantity supplied. c. a surplus of rental units will result. d. all low-income recipients will obviously and clearly be helped.

b. quantity demanded exceeds the quantity supplied.

A price ceiling will create a persistent ________ and a price floor will create a persistent ________. a. surplus; surplus b. shortage; surplus c. shortage; shortage d. surplus; shortage

b. shortage; surplus

A price ceiling will create a persistent ________ and a price floor will create a persistent ________. Select one: a. surplus; surplus b. shortage; surplus c. shortage; shortage d. surplus; shortage

b. shortage; surplus

A price floor is likely to cause deadweight loss because: a. buyers incur additional search costs looking for the scarce good. b. the quantity of the good being bought and sold is less than the equilibrium quantity. c. a black market emerges where sellers sell the good at prices above the price floor. d. some buyers who want to buy at the controlled price are unable to find a seller willing to sell at that price.

b. the quantity of the good being bought and sold is less than the equilibrium quantity.

When a tenant in a rent-controlled apartment sublets the apartment to another renter at a rent higher than the price ceiling: a. it is inefficient. b. we say that the transaction takes place on a black market. c. there is an increase in quantity demanded. d. there is a decrease in quantity demanded.

b. we say that the transaction takes place on a black market.

If the price is above the equilibrium price in the market for grapefruit, total surplus: Select one: a. will not change. b. will decrease. c. will increase. d. may change, but we cannot determine the change without more information.

b. will decrease.

When there is a new medical report extolling the health advantages of grapefruit, total producer surplus in the grapefruit market: a. may change, but we can't tell how. b. will increase. c. will remain the same. d. will decrease.

b. will increase.

Aisha is willing to spend $5 for a haircut. If she finds a salon where the price of a haircut is only $2, she will receive ______ in consumer surplus from this transaction. a. $0 b. $2 c. $3 d. $5

c. $3

Vonda and Aleiyah are shopping together at the mall for new jeans. Vonda is willing to pay $90 and Aleiyah is willing to pay $50 for a pair of jeans. If the price of jeans is $59, how much total consumer surplus is achieved in this market? a. $9 b. $0 c. $31 d. $40

c. $31

The Atlanta Symphony wants to make sure that its concerts are affordable for all residents of Atlanta and therefore prices all its tickets at $25 each. However, outside Symphony Hall, scalpers can sell the same tickets for $75 or more. The true cost to the concertgoer of a ticket to the symphony is at least: a. $25. b. $50. c. $75. d. $100.

c. $75.

Which of the following is true if there is a decrease in the demand for cupcakes? a. There is an increase in producer surplus. b. There is an increase in total surplus. c. There is a decrease in producer surplus. d. There is an increase in consumer surplus.

c. There is a decrease in producer surplus.

Suppose that a binding price floor is in place in a particular market. If the market is deregulated and the price floor is removed, then which of the following effects could occur? a. The quantity demanded would decrease and the quantity supplied would increase. b. An excess demand would develop. c. There would be a decrease in the quality of the good supplied. d. There would be an increase in the quality of the good supplied.

c. There would be a decrease in the quality of the good supplied.

Suppose that a binding price floor is in place in a particular market. If the market is deregulated and the price floor is removed, then which of the following effects could occur? a. The quantity demanded would decrease and the quantity supplied would increase. b. An excess demand would develop. c. There would be a decrease in the quality of the good supplied. d. There would be an increase in the quality of the good supplied.

c. There would be a decrease in the quality of the good supplied.

A student organization is formed on your local college campus to protest against the high rent prices for apartments near campus. This organization is planning a meeting with the dean and president of the college. Which of the following best describes the policy the student organization will fight for? a. a price control b. a price floor c. a price ceiling d. a quantity control

c. a price ceiling

The government imposes a price ceiling below the equilibrium price. The price ceiling will cause: a. quantity demanded to decrease. b. quantity supplied to increase. c. a shortage of the good. d. an increase in the quality of the good.

c. a shortage of the good.

Producers may supply a good with an inefficiently high quality if the government imposes a(n): a. price control. b. excise tax. c. binding price floor. d. binding price ceiling.

c. binding price floor

Some smaller retailers often go out of business when Walmart opens a new store. One of the reasons for this development could be that: a. consumers in those areas receive no consumer surplus from Walmart. b. smaller stores increase prices to compete. c. consumers in those areas receive a larger consumer surplus from shopping at Walmart than from the smaller stores. d. Walmart practices unfair pricing methods that reduce consumer surplus over time.

c. consumers in those areas receive a larger consumer surplus from shopping at Walmart than from the smaller stores.

Anna is willing to sell her 20-year-old boat, but not for less than $2,300. For Anna, the cost of selling this boat is ________ $2,300. a. There is not enough information to answer the question. b. less than c. equal to d. more than

c. equal to

Suppose the government sets a price floor below the current price of the good. This price floor will: a. result in an excess supply of the good. b. result in an excess demand for the good. c. have no effect on the price of the good. d. increase the quantity supplied of the good.

c. have no effect on the price of the good.

A market price support policy establishes a price floor, which: a. decreases the price paid by consumers. b. does not change the price paid by consumers. c. increases the price received by farmers. d. decreases the price received by farmers.

c. increases the price received by farmers.

A price floor is a ________ set ________ the equilibrium price. a. minimum price; at b. maximum price; below c. minimum price; above d. maximum price; above

c. minimum price; above

If the price of a good is held above the equilibrium price: a. quantity demanded will exceed quantity supplied. b. demand will decrease. c. quantity supplied will exceed quantity demanded. d. supply will increase.

c. quantity supplied will exceed quantity demanded.

A consumer's willingness to pay depends on a. the cost of producing the good or service. b. the size of the surplus of the good or service. c. the benefit that he or she expects to receive from consuming the good or service. d. the size of the shortage of the good or service.

c. the benefit that he or she expects to receive from consuming the good or service.

A consumer's willingness to pay reflects a. the cost of producing the good or service. b. the minimum price at which he or she would buy the good or service. c. the maximum price at which he or she would buy the good or service. d. the equilibrium price of the good or service.

c. the maximum price at which he or she would buy the good or service.

The total producer surplus in the Wisconsin milk market is represented by: a. the sum of all prices paid multiplied by the number of gallons of milk sold. b. the total revenue of the milk producers in Wisconsin. c. the sum of the individual producer surpluses in this market. d. the total cost of selling milk in Wisconsin.

c. the sum of the individual producer surpluses in this market.

When a market is in equilibrium: a. total surplus is minimized. b. consumer surplus will be zero. c. total surplus is maximized. d. producer surplus will be zero.

c. total surplus is maximized.

Natasha, Nelson, and Nikolai are all looking to buy flashlights for a camping trip. Natasha is willing to pay $4, Nelson is willing to pay $10, and Nikolai is willing to pay $20. If the actual price of a flashlight turns out to be $8, what is the total consumer surplus for these three shoppers? a. $10 b. 0 c. $28 d. $14

d. $14

Natasha, Nelson, and Nikolai are all looking to buy flashlights for a camping trip. Natasha is willing to pay $4, Nelson is willing to pay $10, and Nikolai is willing to pay $20. If the actual price of a flashlight turns out to be $13, what is the total consumer surplus for these three shoppers? a. $21 b. 0 c. -$5 d. $7

d. $7

Adie wants to take some online classes this semester. She is willing to pay $1,000 for the first class, $800 for the second, $700 for the third, and $500 for the fourth. If online classes cost $750, Adie will take ________ online classes and her consumer surplus will equal ________. Select one: a. 4; $600 b. 2; $400 c. 3; $350 d. 2; $300

d. 2; $300

Governments continue to impose price controls. Which of the following is not a valid reason for this? a. Some people do benefit from such price controls. b. People fear that prices will change dramatically if the price controls were removed. c. It is politically expedient to enact regulations that benefit influential voting groups. d. Price controls are always effective.

d. Price controls are always effective.

If the market for grapefruit is in equilibrium without any outside intervention to change the equilibrium price: a. a few mutually beneficial trades are missed. b. there is some deadweight loss. c. total surplus is minimized. d. consumer and producer surplus are maximized.

d. consumer and producer surplus are maximized.

Tomatoes are an input in the production of ketchup, and ketchup and mustard are substitutes. A decrease in the price of tomatoes will _________ the total surplus in the market for mustard. a. increase b. not change c. first increase and then decrease d. decrease

d. decrease

Black markets may develop with price controls because: a. price controls increase efficiency. b. quantity demanded equals quantity supplied at the mandated price. c. individuals cannot profit by illegal exchanges. d. individuals can profit by illegal exchanges.

d. individuals can profit by illegal exchanges.

A price ceiling will have no effect if: a. it creates a shortage. b. the equilibrium price is above the price ceiling. c. it is set below the equilibrium price. d. it is set above the equilibrium price.

d. it is set above the equilibrium price

A competitive market for cell phone chargers is currently in equilibrium. If the price is below the equilibrium price in the cell phone charger market, what will happen to producer surplus? a. the change in producer surplus is indeterminate. b. producer surplus will rise. c. There will be no change to producer surplus. d. producer surplus will fall.

d. producer surplus will fall.

The market for apples is in equilibrium at a price of $0.50 per pound. If the government imposes a price floor in the market at a price of $0.40 per pound, then: a. quantity demanded will decrease. b. quantity supplied will increase. c. there will be a shortage of the good. d. the price floor will not affect the market price or output.

d. the price floor will not affect the market price or output.

Producer surplus for an individual seller is equal to: a. the marginal cost of the good minus the willingness to pay for the good. b. the willingness to pay for the good minus the price of the good. c. the marginal cost of the good minus the price of the good. d. the price of the good minus the marginal cost of producing the good.

d. the price of the good minus the marginal cost of producing the good.

When a market is efficient: a. consumers who value buying a good the least are the ones who are able to purchase the good. b. producers whose willingness to accept a price that is greater than the market price are able to sell their good. c. there are ways to make everyone better off. d. there is no way to make some people better off without making other people worse off.

d. there is no way to make some people better off without making other people worse off.

The government decides to impose a price ceiling on a good because it thinks the market-determined price is "too high." If it imposes the price ceiling above the equilibrium price: a. consumers will respond to the higher price and therefore wish to purchase less of the good than at the equilibrium price. b. producers will respond to the higher price and therefore offer fewer units for sale. c. consumers will purchase less of the good after the price ceiling is imposed. d. there will be no change to either the price or quantity in the market.

d. there will be no change to either the price or quantity in the market.

If there is a decrease in demand, total surplus: a. will remain the same. b. may change, but we can't tell how. c. will increase. d. will decrease.

d. will decrease

Peanut butter is an inferior good. If there is an increase in income, total surplus in the peanut butter market: a. may change, but we cannot determine the change without more information. b. will increase. c. will not change. d. will decrease.

d. will decrease

If more agricultural land is devoted to producing peanuts, total surplus in the peanut butter market: a. may change, but we cannot determine the change without more information. b. will not change. c. will decrease. d. will increase.

d. will increase

If the price of a good rises, then producer surplus: a. will remain the same. b. may change, but we can't tell how. c. will decrease. d. will increase.

d. will increase

If there is an increase in demand, total surplus: a. will decrease. b. will remain the same. c. may change, but we can't tell how. d. will increase.

d. will increase

If more agricultural land is devoted to producing peanuts, total surplus in the peanut butter market: a. will not change. b. will decrease. c. may change, but we cannot determine the change without more information. d. will increase.

d. will increase.