Question 1

A demand curve reflects each of the following except the

Accepted Answer

A) willingness to pay of all buyers in the market. 
B) value each buyer in the market places on the good. 
C) highest price buyers are willing to pay for each quantity. 
D) ability of buyers to obtain the quantity they desire. 
A) willingness to pay of all buyers in the market. 
B) value each buyer in the market places on the good. 
C) highest price buyers are willing to pay for each quantity. 
D) ability of buyers to obtain the quantity they desire.

Question 2

According to many economists, government restrictions on ticket scalping do all of the following except

Accepted Answer

A) inconvenience the public. 
B) reduce the audience for cultural and sports events. 
C) waste police officers' time. 
D) keep the cost of tickets to all consumers low. 
A) inconvenience the public. 
B) reduce the audience for cultural and sports events. 
C) waste police officers' time. 
D) keep the cost of tickets to all consumers low.

Question 3

Figure 7-27  
-Refer to Figure 7-27. Sellers whose costs are greater than the equilibrium price are represented by segment

Accepted Answer

A) AC. 
B) CK. 
C) BC. 
D) CH. 
A) AC. 
B) CK. 
C) BC. 
D) CH.

Question 4

For any given quantity, the price on a demand curve represents the marginal buyer's willingness to pay.

Accepted Answer

A) True 
 B)False

Question 5

Figure 7-10  
-Refer to Figure 7-10. Which area represents the increase in producer surplus when the price rises from P1 to P2?

Accepted Answer

A) BCG 
B) ACH 
C) ABGD 
D) AHGB 
A) BCG 
B) ACH 
C) ABGD 
D) AHGB

Question 6

If the demand for light bulbs increases, producer surplus in the market for light bulbs

Accepted Answer

A) increases. 
B) decreases. 
C) remains the same. 
D) may increase, decrease, or remain the same. 
A) increases. 
B) decreases. 
C) remains the same. 
D) may increase, decrease, or remain the same.

Question 7

Table 7-4
The numbers in Table 7-1 reveal the maximum willingness to pay for a ticket to a Chicago Cubs vs. St. Louis Cardinal's baseball game at Wrigley Field.  
-Refer to Table 7-4. If you have two (essentially) identical tickets that you sell to the group in an auction, what will be the selling price for each ticket?

Accepted Answer

A) $21 
B) $26 
C) $51 
D) $61 
A) $21 
B) $26 
C) $51 
D) $61

Question 8

Table 7-10
The following table represents the costs of five possible sellers.  
-Refer to Table 7-10. Suppose each of the five sellers can supply at most one unit of the good. The market quantity supplied is exactly 4 if the price is

Accepted Answer

A) $860. 
B) $1,050. 
C) $1,650. 
D) $1,400. 
A) $860. 
B) $1,050. 
C) $1,650. 
D) $1,400.

Question 9

Table 7-11
The only four producers in a market have the following costs:  
-Refer to Table 7-11. If Evan, Selena, Angie, and Kris sell the good, and the resulting producer surplus is $700, then the price must have been

Accepted Answer

A) $200. 
B) $300. 
C) $500. 
D) $700. 
A) $200. 
B) $300. 
C) $500. 
D) $700.

Question 10

Scenario 7-1
Suppose market demand is given by the equation  
-Refer to Scenario 7-1. If the market equilibrium price falls from $10 to $5, what is the change in total consumer surplus in the market?

Accepted Answer

Consumer s

Question 11

Figure 7-23  
-Refer to Figure 7-23. If the price were P1, producer surplus would be represented by the area

Accepted Answer

A) F. 
B) F+G. 
C) D+H+F. 
D) D+H+F+G+I. 
A) F. 
B) F+G. 
C) D+H+F. 
D) D+H+F+G+I.

Question 12

Bob purchases a book for $6, and his consumer surplus is $2. How much is Bob willing to pay for the book?

Accepted Answer

A) $6. 
B) $2. 
C) $8. 
D) $4. 
A) $6. 
B) $2. 
C) $8. 
D) $4.

Question 13

Figure 7-11  
-Refer to Figure 7-11. If the demand curve is D and the supply curve shifts from S' to S, what is the change in producer surplus?

Accepted Answer

A) Producer surplus increases by $625. 
B) Producer surplus increases by $1,875. 
C) Producer surplus decreases by $625. 
D) Producer surplus decreases by $1,875. 
A) Producer surplus increases by $625. 
B) Producer surplus increases by $1,875. 
C) Producer surplus decreases by $625. 
D) Producer surplus decreases by $1,875.

Question 14

Table 7-7  
-Refer to Table 7-7. You have four essentially identical extra tickets to the Midwest Regional Sweet 16 game in the men's NCAA basketball tournament. The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game. You offer to sell the tickets for $325. How many tickets do you sell, and what is the total consumer surplus in the market?

Accepted Answer

A) one ticket; $175 
B) two tickets; $225 
C) three tickets; $225 
D) three tickets; $275 
A) one ticket; $175 
B) two tickets; $225 
C) three tickets; $225 
D) three tickets; $275

Question 15

Figure 7-19  
-Refer to Figure 7-19. At the equilibrium price, total surplus is

Accepted Answer

A) $125. 
B) $450. 
C) $250. 
D) $500. 
A) $125. 
B) $450. 
C) $250. 
D) $500.

Question 16

Figure 7-9  
-Refer to Figure 7-9. If the price of the good is $9.50, then producer surplus is

Accepted Answer

A) $3.00. 
B) $6.50. 
C) $10.50. 
D) $8.50. 
A) $3.00. 
B) $6.50. 
C) $10.50. 
D) $8.50.

Question 17

Figure 7-13  
-Refer to Figure 7-13. If the equilibrium price rises from $60 to $120, what is the additional producer surplus to initial producers in the market?

Accepted Answer

A) $1,200 
B) $2,400 
C) $3,600 
D) $4,800 
A) $1,200 
B) $2,400 
C) $3,600 
D) $4,800

Question 18

Figure 7-20  
-Refer to Figure 7-20. Total surplus can be measured as the area

Accepted Answer

A) JNK. 
B) JNML. 
C) JRL. 
D) JNL. 
A) JNK. 
B) JNML. 
C) JRL. 
D) JNL.

Question 19

Figure 7-25  
-Refer to Figure 7-25. Suppose the government imposes a price ceiling of $16 in this market. If the buyers with the highest willingness to pay purchase the good, then total surplus will be

Accepted Answer

A) $256. 
B) $768. 
C) $1,024. 
D) $1,280. 
A) $256. 
B) $768. 
C) $1,024. 
D) $1,280.

Question 20

Caroline sharpens knives in her spare time for extra income. Buyers of her service are willing to pay $2.95 per knife for as many knives as Caroline is willing to sharpen. On a particular day, she is willing to sharpen the first knife for $2.00, the second knife for $2.25, the third knife for $2.75, and the fourth knife for $3.50. Assume Caroline is rational in deciding how many knives to sharpen. Her producer surplus is

Accepted Answer

A) $0.95. 
B) $1.15. 
C) $1.30. 
D) $1.85. 
A) $0.95. 
B) $1.15. 
C) $1.30. 
D) $1.85.

A demand curve reflects each of the following except the

According to many economists, government restrictions on ticket scalping do all of the following except

Figure 7-27 -Refer to Figure 7-27. Sellers whose costs are greater than the equilibrium price are represented by segment

For any given quantity, the price on a demand curve represents the marginal buyer's willingness to pay.

Figure 7-10 -Refer to Figure 7-10. Which area represents the increase in producer surplus when the price rises from P1 to P2?

If the demand for light bulbs increases, producer surplus in the market for light bulbs

Table 7-10 The following table represents the costs of five possible sellers. -Refer to Table 7-10. Suppose each of the five sellers can supply at most one unit of the good. The market quantity supplied is exactly 4 if the price is

Table 7-11 The only four producers in a market have the following costs: -Refer to Table 7-11. If Evan, Selena, Angie, and Kris sell the good, and the resulting producer surplus is $700, then the price must have been

Scenario 7-1 Suppose market demand is given by the equation -Refer to Scenario 7-1. If the market equilibrium price falls from $10 to $5, what is the change in total consumer surplus in the market?

Figure 7-23 -Refer to Figure 7-23. If the price were P1, producer surplus would be represented by the area

Bob purchases a book for $6, and his consumer surplus is $2. How much is Bob willing to pay for the book?

Figure 7-11 -Refer to Figure 7-11. If the demand curve is D and the supply curve shifts from S' to S, what is the change in producer surplus?

Figure 7-19 -Refer to Figure 7-19. At the equilibrium price, total surplus is

Figure 7-9 -Refer to Figure 7-9. If the price of the good is $9.50, then producer surplus is

Figure 7-13 -Refer to Figure 7-13. If the equilibrium price rises from $60 to $120, what is the additional producer surplus to initial producers in the market?

Figure 7-20 -Refer to Figure 7-20. Total surplus can be measured as the area

Figure 7-25 -Refer to Figure 7-25. Suppose the government imposes a price ceiling of $16 in this market. If the buyers with the highest willingness to pay purchase the good, then total surplus will be

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Filters

Exam 7: Consumers, Producers, and the Efficiency of Markets

A demand curve reflects each of the following except the

According to many economists, government restrictions on ticket scalping do all of the following except

Figure 7-27 -Refer to Figure 7-27. Sellers whose costs are greater than the equilibrium price are represented by segment

For any given quantity, the price on a demand curve represents the marginal buyer's willingness to pay.

Figure 7-10 -Refer to Figure 7-10. Which area represents the increase in producer surplus when the price rises from P1 to P2?

If the demand for light bulbs increases, producer surplus in the market for light bulbs

Table 7-10 The following table represents the costs of five possible sellers. -Refer to Table 7-10. Suppose each of the five sellers can supply at most one unit of the good. The market quantity supplied is exactly 4 if the price is

Table 7-11 The only four producers in a market have the following costs: -Refer to Table 7-11. If Evan, Selena, Angie, and Kris sell the good, and the resulting producer surplus is $700, then the price must have been

Scenario 7-1 Suppose market demand is given by the equation -Refer to Scenario 7-1. If the market equilibrium price falls from $10 to $5, what is the change in total consumer surplus in the market?

Figure 7-23 -Refer to Figure 7-23. If the price were P1, producer surplus would be represented by the area

Bob purchases a book for $6, and his consumer surplus is $2. How much is Bob willing to pay for the book?

Figure 7-11 -Refer to Figure 7-11. If the demand curve is D and the supply curve shifts from S' to S, what is the change in producer surplus?

Figure 7-19 -Refer to Figure 7-19. At the equilibrium price, total surplus is

Figure 7-9 -Refer to Figure 7-9. If the price of the good is $9.50, then producer surplus is

Figure 7-13 -Refer to Figure 7-13. If the equilibrium price rises from $60 to $120, what is the additional producer surplus to initial producers in the market?

Figure 7-20 -Refer to Figure 7-20. Total surplus can be measured as the area

Figure 7-25 -Refer to Figure 7-25. Suppose the government imposes a price ceiling of $16 in this market. If the buyers with the highest willingness to pay purchase the good, then total surplus will be

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Filters