Economics ch 7

At the equilibrium price, consumer surplus is

$800

Moving production from a high-cost producer to a low-cost producer will

raise total surplus.

The maximum price that a buyer will pay for a good is called

willingness to pay.

Producer surplus is

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

Evan purchases a wall calendar for $9, and his consumer surplus is $1. How much is Evan willing to pay for the wall calendar?

$10

If the price is $17, then consumer surplus in the market is

$15, and Alexa, Erica, and Biyu purchase the good.

Which area represents producer surplus when the price is P2?

ACH

If the price of the product is $110, then who would be willing to purchase the product?

Calvin, Sam, and Andrew

Which of the following events would increase producer surplus?

Sellers' costs stay the same and the price of the good increases.

Suppose producer surplus is larger than C but smaller than A+B+C. The price of the good must be

between P1 and P2

As a result of a decrease in price,

new buyers enter the market, increasing consumer surplus

If a consumer places a value of $14 on a particular good and if the price of the good is $12, then the

consumer enjoys consumer surplus if he or she buys the good.