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

Table 7-10 The following table represents the costs of five possible sellers. Seller Cost Abby $1,600 Bobby $1,300 Dianne $1,100 Evaline $900 Carlos $800 -Refer to Table 7-10. If the market price is $1,400, the combined total cost of all participating sellers is

Table 7-16 -Refer to Table 7-16. At a price of $2.00, total surplus is

If the government allowed a free market in organs for transplant there would be

Five hundred units of good x are currently bought and sold. The marginal buyer is willing to pay $40 for the 500^th unit, and the cost to the marginal seller is $35 for the 500^th unit. We know that

Which of the following will cause an increase in consumer surplus?

Table 7-7 -Refer to Table 7-7. You have an extra ticket 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 hold an auction to sell the ticket. Who makes the winning bid, and what does he offer to pay for the ticket?

Welfare economics is the study of

If the demand for leather decreases, producer surplus in the leather market

Table 7-9 The only four consumers in a market have the following willingness to pay for a good: -Refer to Table 7-9. If there is only one unit of the good available for purchase, and if the buyers bid against each other for the right to purchase it, then the good will sell for

Market power and externalities are examples of

At Nick's Bakery, the cost to make a cheese danish is $1.50 per danish. As a result of selling ten danishes, Nick experiences a producer surplus in the amount of $20. Nick must be selling his danishes for

Figure 7-23 -Refer to Figure 7-23. The equilibrium price is

Scenario 7-2 Suppose market demand and market supply are given by the equations: -Refer to Scenario 7-2. How much is total consumer surplus at the equilibrium price in this market?

Which of the following will cause a decrease in producer surplus?

Figure 7-25 -Refer to Figure 7-25. At the equilibrium price, total surplus is

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

Figure 7-21 -Refer to Figure 7-21. When the price is P1, area B represents

Table 7-2 This table refers to five possible buyers' willingness to pay for a case of Vanilla Coke. -Refer to Table 7-2. If the price of Vanilla Coke is $6.90, who will purchase the good?

Figure 7-23 -Refer to Figure 7-23. At equilibrium, total surplus is represented by the area

Figure 7-22 -Refer to Figure 7-22. If 40 units of the good are bought and sold, then