Question 1

The total surplus in a market is:

Accepted Answer

A)  the excess supply due to a price above the equilibrium price. 
B)  the surplus that accrues when a good is not scarce, defined as the total amount (if any) by which quantity supplied exceeds quantity demanded at a zero price. 
C)  the net benefit to consumers, defined as the excess of consumer surplus over producer surplus. 
D)  the sum of consumer surplus and producer surplus. 
A)  the excess supply due to a price above the equilibrium price. 
B)  the surplus that accrues when a good is not scarce, defined as the total amount (if any) by which quantity supplied exceeds quantity demanded at a zero price. 
C)  the net benefit to consumers, defined as the excess of consumer surplus over producer surplus. 
D)  the sum of consumer surplus and producer surplus.

Question 2

Use the following to answer questions:
Figure: A Market in Equilibrium  
-(Figure: A Market in Equilibrium) Look at the figure A Market in Equilibrium. At the equilibrium price, this market's consumer surplus is equal to the area:

Accepted Answer

A)  ABC. 
B)  ADI. 
C)  DIF. 
D)  EHF. 
A)  ABC. 
B)  ADI. 
C)  DIF. 
D)  EHF.

Question 3

Use the following to answer question:
Figure: The Market for Sandwiches  
-(Figure: The Market for Sandwiches) Look at the figure The Market for Sandwiches. At the competitive price of $5, 10 sandwiches are sold. At this competitive price, consumer surplus equals _____ and producer surplus equals _____.

Accepted Answer

A)  $50; $50 
B)  $100; $50 
C)  $50; $25 
D)  $100; $25 
A)  $50; $50 
B)  $100; $50 
C)  $50; $25 
D)  $100; $25

Question 4

Use the following to answer questions:
Figure: Producer Surplus II  
-(Figure: Producer Surplus II) Look at the figure Producer Surplus II. If the price falls from P2 to P1, producer surplus decreases by the area:

Accepted Answer

A)  LMK. 
B)  P1K0. 
C)  P2M0. 
D)  P2P1KM. 
A)  LMK. 
B)  P1K0. 
C)  P2M0. 
D)  P2P1KM.

The total surplus in a market is:

Use the following to answer questions: Figure: A Market in Equilibrium -(Figure: A Market in Equilibrium) Look at the figure A Market in Equilibrium. At the equilibrium price, this market's consumer surplus is equal to the area:

Use the following to answer question: Figure: The Market for Sandwiches -(Figure: The Market for Sandwiches) Look at the figure The Market for Sandwiches. At the competitive price of $5, 10 sandwiches are sold. At this competitive price, consumer surplus equals _ and producer surplus equals _.

Use the following to answer questions: Figure: Producer Surplus II -(Figure: Producer Surplus II) Look at the figure Producer Surplus II. If the price falls from P₂ to P₁, producer surplus decreases by the area:

First Principles

Economic Models: Trade-Offs and Trade 25

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods Common Resources

The Economics of the Welfare

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Filters

Exam 4: Consumer and Producer Surplus

The total surplus in a market is:

Use the following to answer questions: Figure: A Market in Equilibrium -(Figure: A Market in Equilibrium) Look at the figure A Market in Equilibrium. At the equilibrium price, this market's consumer surplus is equal to the area:

Use the following to answer questions: Figure: Producer Surplus II -(Figure: Producer Surplus II) Look at the figure Producer Surplus II. If the price falls from P2 to P1, producer surplus decreases by the area:

First Principles

Economic Models: Trade-Offs and Trade 25

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods Common Resources

The Economics of the Welfare

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Filters

Use the following to answer questions: Figure: Producer Surplus II -(Figure: Producer Surplus II) Look at the figure Producer Surplus II. If the price falls from P₂ to P₁, producer surplus decreases by the area: