Economics 3
#108.) If Sharon values a good at $70, and the market price is $35, what is Sharon's consumer surplus?
$35
#133.)
...
#123.) One example of a development that allows suppliers to produce at lower costs is
Bovine Growth Hormone BGH
#110.) The difference between the height of the demand curve and a horizontal line drawn at the market price.
Consumer surplus for the marginal buyer at each quantity demanded
#109.) If Steve values a good at $25, and the market price is $35, what is Steve's consumer surplus?
Nothing, Steve does not purchase the good.
#118.) An outcome that maximizes total surplus satisfies the criterion of
Pareto efficiency
#105.) The height of the market demand curve at each point represents what?
The willingness to pay of the marginal buyer
#129.) What are the effects on total surplus from introduction of BGH?
Total surplus increased unambiguously.
#124.) By how much did BGH increase milk production?
between 10 and 15 percent
#120.) Any point to the right of the equilibrium quantity
cannot be achieved voluntarily
#107.) The benefit that consumers receive is known as
consumer surplus
#126.) Indicate the new equilibrium point in the market for cigarettes after an anti-smoking campaign.
down and to the left
#125.) Indicate the new equilibrium point after the introduction of BGH.
down and to the right
#131.) What do we employ to measure the size of the changes in prices and quantities as well as their direction?
elasticity
#130.) After the introduction of BGH, consumer surplus ________ and producer surplus ________.
increased unambiguously, changed ambiguously
#119.) Any point to the left of the equilibrium quantity
inefficient
#106.) The buyer who at a price is just indifferent between buying the good in question or not buying it is known as
marginal buyer
#113.) In terms of costs, the height of the supply curve represents what?
opportunity cost to the marginal seller
#132.) Measure of how much the quantity demanded responds to a change in price.
price elasticity of demand
The difference between the price and the opportunity cost is known as
producer surplus
#128.) Indicate the new equilibrium point if the consumers expect a shortage in the future, and suppliers expect prices to decrease in the future.
right
#122.) One of the defining characteristics of our modern economy is
technological progress
#116.) Total producer surplus is
the area between the market price and the supply curve
#114.) Define marginal seller
the seller who would leave the market if the price were any lower
#112.) The height of the supply curve at each quantity supplied represents
the willingness to supply of the marginal supply
#121.) A competitive market would achieve the same results as a market planner simply through what mechanisms?
through the self-interested actions of its participants, responding only to the signals provided by market price
#111.) Total area below the demand curve and above the market price is known as
total consumer surplus
#117.) What is total surplus?
total consumer surplus plus total producer surplus
#127.) Indicate the new equilibrium point for the milk market if the number of suppliers decreases, and the price of orange juice increases.
up