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
(Table: Consumer Surplus and
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 a decrease in demand, total surplus:A) will increase.B) will decrease.C) will remain the same.D) may change, but we can't tell how.4.
When there is a bountiful harvest of grapefruit, total consumer surplus in the grapefruit market:A) will increase.B) will decrease.C) will remain the same.D) may change but we can't tell how.5.
Mark and Rasheed are at the bookstore buying new calculators for the semester. Mark is willing to pay $75 andRasheed is willing to pay $100 for a graphing calculator. The price for a calculator at the bookstore is $65. Howmuch is Mark's individual consumer surplus?A) $10B) $25C) $35D) $756.
Which of the following is
when a market is in equilibrium and there is no government intervention?A) Total surplus is minimized.B) The deadweight loss is maximized.C) No mutually beneficial trades are missed.D) Some mutually beneficial trades may be missed.