Exam 4: Consumer and Producer Surplus

Use the following to answer questions: Figure: Demand for Cincinnati Reds Games Tickets -(Figure: Demand for Cincinnati Reds Games Tickets) The figure Demand for Cincinnati Red Games Tickets represents Jeff's annual demand for tickets to Cincinnati Reds baseball games. Suppose the Reds required all fans to purchase a $12 parking pass for each game. This effectively raises the price of a ticket to $32, and Jeff will decrease his quantity demanded for Reds baseball by one ticket this year. How much consumer surplus has Jeff lost?

(Essay)

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Question 21

If total surplus rises, there may have been a(n) _ in demand or a(n) _ in supply.

(Multiple Choice)

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Question 22

If the market for tickets to the World Series is in equilibrium but owners of tickets who would have sold their tickets are not allowed to sell, while fans who would not sell their tickets are required to sell, total surplus would decrease.

(True/False)

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Question 23

Use the following to answer questions: Figure: Producer Surplus -(Figure: Producer Surplus) Look at the figure Producer Surplus. When the price falls from $45 to $35, producer surplus _ for a total producer surplus of _.

(Multiple Choice)

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Question 24

Suppose a competitive market has a downward-sloping demand curve and a horizontal supply curve. If the supply curve shifts downward, equilibrium price will ___, equilibrium quantity will _, consumer surplus will _, and producer surplus will ___.

(Multiple Choice)

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Question 25

Use the following to answer questions: Figure: The Wireless Mouse Market -(Figure: Wireless Mouse Market) Look at the figure Wireless Mouse Market. Calculate producer surplus when the market is in equilibrium.

(Multiple Choice)

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Question 26

Gehrig is willing to pay $90 for a cap made of raccoon skin. Suppose he finds such a cap for $71 on eBay. If Gehrig buys the cap for $71, he will have an individual consumer surplus of $71.

(True/False)

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Question 27

Use the following to answer questions: -(Table: Willingness to Pay for Peanuts) Using the table Willingness to Pay for Peanuts, if the price of a bag of peanuts is $3, the total value of consumer surplus is equal to:

(Multiple Choice)

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Question 28

Use the following to answer questions: Figure: Consumer and Producer Surplus -(Figure: Consumer and Producer Surplus) Look at the figure Consumer and Producer Surplus. If the price is held above equilibrium, consumer surplus _ and total surplus _.

(Multiple Choice)

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Question 29

Use the following to answer questions: Figure: Gain in Consumer Surplus -(Figure: Gain in Consumer Surplus) Look at the figure Gain in Consumer Surplus. Identify the area or areas that represent the total change in consumer surplus when the price falls from P₁ to P₂.

(Multiple Choice)

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Question 30

Suppose the market demand curve for TV remotes is given by the equation Q_d = 100 - 2P, where P is the price and Q_d is the number of TV remotes demanded. If the market price of TV remotes is $10, then the quantity demanded equals _ and the value of consumer surplus is _.

(Multiple Choice)

4.9/5

(79)

Question 31

Use the following to answer questions: -(Table: Producer Surplus and Phantom Tickets) The table Producer Surplus and Phantom Tickets shows the minimum price at which each of the students is willing to sell a ticket to Phantom of the Opera. Assume that each student has only one ticket to sell. Given the information in the table, if the price for Phantom tickets is $55, total producer surplus for the five students is:

(Multiple Choice)

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Question 32

Market failure occurs when a market fails to be efficient.

(True/False)

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Question 33

Use the following to answer questions: -(Table: Consumer Surplus) Look at the table Consumer Surplus. Assume that each student wants to buy one ticket. If the price of a ticket to see The Nutty Nutcracker is $50 and there is no other market for tickets, total consumer surplus for the five students is:

(Multiple Choice)

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Question 34

Use the following to answer questions: -(Table: Producer Surplus) Look at the table Producer Surplus. If the price of a ticket to see The Nutty Nutcracker is $75, then Dudley's producer surplus is:

(Multiple Choice)

4.8/5

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Question 35

Use the following to answer question: Figure: Producer Surplus and Supply -(Figure: Producer Surplus and Supply) Look at the figure Producer Surplus and Supply. The difference between the total revenue received by sellers and their total cost is called _ surplus, which is depicted by area _ if the amount sold is E.

(Multiple Choice)

4.8/5

(101)

Question 36

Use the following to answer questions: -(Table: Willingness to Pay for Basketball Sneakers) The table Willingness to Pay for Basketball Sneakers shows each player's willingness to pay for basketball sneakers. Assume that each player wants to buy at most, one pair of sneakers. If the price of basketball sneakers is $60, how many pairs will be purchased?

(Multiple Choice)

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(71)

Question 37

Use the following to answer questions: -(Table: Willingness to Pay for Peanuts) Using the table Willingness to Pay for Peanuts, if the price of a bag of peanuts is $4, what is the value of George's consumer surplus?

(Multiple Choice)

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(84)

Question 38

Along a straight-line downward-sloping demand curve, a decrease in the market price of a good:

(Multiple Choice)

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(78)

Question 39

If the market for smartphones is initially in equilibrium at a price of $250 and consumption is reallocated so that Amanda, who values a phone at $300, is required to give it to Brent, who values a phone at $225, total surplus in the smartphone market will increase.

(True/False)

4.8/5

(80)

Question 40

Showing 21 - 40 of 224

If total surplus rises, there may have been a(n) _ in demand or a(n) _ in supply.

If the market for tickets to the World Series is in equilibrium but owners of tickets who would have sold their tickets are not allowed to sell, while fans who would not sell their tickets are required to sell, total surplus would decrease.

Use the following to answer questions: Figure: Producer Surplus -(Figure: Producer Surplus) Look at the figure Producer Surplus. When the price falls from $45 to $35, producer surplus _ for a total producer surplus of _.

Suppose a competitive market has a downward-sloping demand curve and a horizontal supply curve. If the supply curve shifts downward, equilibrium price will ___, equilibrium quantity will _, consumer surplus will _, and producer surplus will ___.

Use the following to answer questions: Figure: The Wireless Mouse Market -(Figure: Wireless Mouse Market) Look at the figure Wireless Mouse Market. Calculate producer surplus when the market is in equilibrium.

Gehrig is willing to pay $90 for a cap made of raccoon skin. Suppose he finds such a cap for $71 on eBay. If Gehrig buys the cap for $71, he will have an individual consumer surplus of $71.

Use the following to answer questions: -(Table: Willingness to Pay for Peanuts) Using the table Willingness to Pay for Peanuts, if the price of a bag of peanuts is $3, the total value of consumer surplus is equal to:

Use the following to answer questions: Figure: Consumer and Producer Surplus -(Figure: Consumer and Producer Surplus) Look at the figure Consumer and Producer Surplus. If the price is held above equilibrium, consumer surplus _ and total surplus _.

Use the following to answer questions: Figure: Gain in Consumer Surplus -(Figure: Gain in Consumer Surplus) Look at the figure Gain in Consumer Surplus. Identify the area or areas that represent the total change in consumer surplus when the price falls from P₁ to P₂.

Suppose the market demand curve for TV remotes is given by the equation Q_d = 100 - 2P, where P is the price and Q_d is the number of TV remotes demanded. If the market price of TV remotes is $10, then the quantity demanded equals _ and the value of consumer surplus is _.

Market failure occurs when a market fails to be efficient.

Use the following to answer questions: -(Table: Producer Surplus) Look at the table Producer Surplus. If the price of a ticket to see The Nutty Nutcracker is $75, then Dudley's producer surplus is:

Use the following to answer questions: -(Table: Willingness to Pay for Peanuts) Using the table Willingness to Pay for Peanuts, if the price of a bag of peanuts is $4, what is the value of George's consumer surplus?

Along a straight-line downward-sloping demand curve, a decrease in the market price of a good:

If the market for smartphones is initially in equilibrium at a price of $250 and consumption is reallocated so that Amanda, who values a phone at $300, is required to give it to Brent, who values a phone at $225, total surplus in the smartphone market will increase.

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

If total surplus rises, there may have been a(n) _____ in demand or a(n) _____ in supply.

If the market for tickets to the World Series is in equilibrium but owners of tickets who would have sold their tickets are not allowed to sell, while fans who would not sell their tickets are required to sell, total surplus would decrease.

Use the following to answer questions: Figure: Producer Surplus -(Figure: Producer Surplus) Look at the figure Producer Surplus. When the price falls from $45 to $35, producer surplus _____ for a total producer surplus of _____.

Suppose a competitive market has a downward-sloping demand curve and a horizontal supply curve. If the supply curve shifts downward, equilibrium price will _____, equilibrium quantity will _____, consumer surplus will _____, and producer surplus will _____.

Use the following to answer questions: Figure: The Wireless Mouse Market -(Figure: Wireless Mouse Market) Look at the figure Wireless Mouse Market. Calculate producer surplus when the market is in equilibrium.

Gehrig is willing to pay $90 for a cap made of raccoon skin. Suppose he finds such a cap for $71 on eBay. If Gehrig buys the cap for $71, he will have an individual consumer surplus of $71.

Use the following to answer questions: -(Table: Willingness to Pay for Peanuts) Using the table Willingness to Pay for Peanuts, if the price of a bag of peanuts is $3, the total value of consumer surplus is equal to:

Use the following to answer questions: Figure: Consumer and Producer Surplus -(Figure: Consumer and Producer Surplus) Look at the figure Consumer and Producer Surplus. If the price is held above equilibrium, consumer surplus _____ and total surplus _____.

Use the following to answer questions: Figure: Gain in Consumer Surplus -(Figure: Gain in Consumer Surplus) Look at the figure Gain in Consumer Surplus. Identify the area or areas that represent the total change in consumer surplus when the price falls from P1 to P2.

Suppose the market demand curve for TV remotes is given by the equation Qd = 100 - 2P, where P is the price and Qd is the number of TV remotes demanded. If the market price of TV remotes is $10, then the quantity demanded equals _____ and the value of consumer surplus is _____.

Market failure occurs when a market fails to be efficient.

Use the following to answer questions: -(Table: Producer Surplus) Look at the table Producer Surplus. If the price of a ticket to see The Nutty Nutcracker is $75, then Dudley's producer surplus is:

Use the following to answer questions: -(Table: Willingness to Pay for Peanuts) Using the table Willingness to Pay for Peanuts, if the price of a bag of peanuts is $4, what is the value of George's consumer surplus?

Along a straight-line downward-sloping demand curve, a decrease in the market price of a good:

If the market for smartphones is initially in equilibrium at a price of $250 and consumption is reallocated so that Amanda, who values a phone at $300, is required to give it to Brent, who values a phone at $225, total surplus in the smartphone market will increase.

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

If total surplus rises, there may have been a(n) _ in demand or a(n) _ in supply.

Use the following to answer questions: Figure: Producer Surplus -(Figure: Producer Surplus) Look at the figure Producer Surplus. When the price falls from $45 to $35, producer surplus _ for a total producer surplus of _.

Suppose a competitive market has a downward-sloping demand curve and a horizontal supply curve. If the supply curve shifts downward, equilibrium price will ___, equilibrium quantity will _, consumer surplus will _, and producer surplus will ___.

Use the following to answer questions: Figure: Consumer and Producer Surplus -(Figure: Consumer and Producer Surplus) Look at the figure Consumer and Producer Surplus. If the price is held above equilibrium, consumer surplus _ and total surplus _.

Use the following to answer questions: Figure: Gain in Consumer Surplus -(Figure: Gain in Consumer Surplus) Look at the figure Gain in Consumer Surplus. Identify the area or areas that represent the total change in consumer surplus when the price falls from P₁ to P₂.

Suppose the market demand curve for TV remotes is given by the equation Q_d = 100 - 2P, where P is the price and Q_d is the number of TV remotes demanded. If the market price of TV remotes is $10, then the quantity demanded equals _ and the value of consumer surplus is _.