Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
25Activity
0 of .
Results for:
No results containing your search query
P. 1
Microeconomics - Chapter 4 (ISBN-10: 1429218290)

Microeconomics - Chapter 4 (ISBN-10: 1429218290)

Ratings: (0)|Views: 21,273|Likes:
Published by Brooke Mitchelle
These answers are ALL correct.

ISBN-10: 1429218290
ISBN-13: 9781429218290
These answers are ALL correct.

ISBN-10: 1429218290
ISBN-13: 9781429218290

More info:

Published by: Brooke Mitchelle on Jun 11, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

03/29/2013

pdf

text

original

 
 Page 1
 Name: __________________________ Date: _____________ 1.
 
Consumer surplus for an individual buyer is equal to:A) the consumer's willingness to pay for the good, minus the marginal cost of producing the good.B) the price of the good, minus the marginal cost of producing the good.C) the consumer's willingness to pay for the good, minus the price of the good.D) the marginal cost of the good, minus the consumer's willingness to pay for the good.Use the following to answer question 2:
 
Table: Consumer Surplus and Phantom Tickets
 2.
 
(Table: Consumer Surplus and
 Phantom
Tickets) Using the information in the table, if the price of a ticket to see
 Phantom of the Opera
is $50, then Robert's consumer surplus is:A) $60.B) $50.C) $10.D) $240.3.
 
If there is an increase in supply, total surplus:A) will increase.B) will decrease.C) will remain the same.D) may change, but we can't tell how.4.
 
If there is a decrease in supply, total surplus:A) will increase.B) will decrease.C) will remain the same.D) may change, but we can't tell how.5.
 
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) more thanB) less thanC) equal toD) There is not enough information to answer the question.6.
 
Along a given demand curve, a decrease in the price of a good:A) will increase consumer surplus.B) will decrease consumer surplus.C) will have no effect on consumer surplus.D) It's impossible to tell what will happen to consumer surplus.
 
 Page 2
Use the following to answer question 7:
 
Table: Music Downloads
 7.
 
(Table: Music Downloads) Two consumers, Eli and Madison, like to download songs to their MP3 players. Thetable represents their willingness to pay for each downloaded song. If an individual song can be downloaded at a price of $1, what is the total consumer surplus received by these consumers?A) $19.25B) $18C) $10D) $118.
 
Maximum total surplus in the market for chocolate occurs when:A) total net gain to producers is generated from trading in the market.B) all consumers who value chocolate are able to buy chocolate.C) all producers are able to sell their chocolate.D) the market is in equilibrium.9.
 
When there is a new medical report extolling the health advantages of grapefruit, total producer surplus in thegrapefruit market:A) will increase.B) will decrease.C) will remain the same.D) may change but we can't tell how.
 
 Page 3
Use the following to answer question 10:
 
Figure: Producer Surplus II
 
10.
 
(Figure: Producer Surplus II) At a price of 
 P 
2
, producer surplus equals the area:A)
 LMK.
 B)
 P 
1
 K 
0.C)
 P 
2
0.D)
 P 
2
 P 
1
 KM.
 Use the following to answer question 11:
 
Figure: Consumer and Producer Surplus
11.
 
(Figure: Consumer and Producer Surplus) In the accompanying figure, an increase in supply will:A) increase consumer surplus.B) always decrease producer surplus.C) increase total surplus.D) increase consumer surplus and total surplus.

Activity (25)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
Rose Aviles liked this
Kajal Patel liked this
Amy Berger liked this
Alex Ochs liked this
Patrick Kirtland liked this
wakemeup143 liked this
Cara Riordan liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->