Question 1

. Use the figure Producer Surplus in the Market for Marzipan. Calculate producer surplus if the price of marzipan is $8 per pound.
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Figure: Producer Surplus in the Market for Marzipan

Accepted Answer

The answer of . Use the figure Producer Surplus in...

Question 2

. Use the figure Producer Surplus in the Market for Marzipan I. What is producer surplus at a price of $5 per pound?
​
Figure: Producer Surplus in the Market for Marzipan I

Accepted Answer

A)  $1 
B)  $2 
C)  $3 
D)  $4 
A)  $1 
B)  $2 
C)  $3 
D)  $4

Question 3

Which of the following does NOT cause the supply curve to shift to the left?

Accepted Answer

A)  an decrease in price 
B)  an increase in production costs 
C)  a decrease in the number of firms 
D)  the lower price expectations of sellers 
A)  an decrease in price 
B)  an increase in production costs 
C)  a decrease in the number of firms 
D)  the lower price expectations of sellers

Question 4

Good A and good B are complements in production. If the price of good A increases, then the _____ of good A increases, and the _____ of good B increases.

Accepted Answer

A)  quantity supplied; supply 
B)  quantity supplied; quantity supplied 
C)  supply; supply 
D)  supply; quantity supplied 
A)  quantity supplied; supply 
B)  quantity supplied; quantity supplied 
C)  supply; supply 
D)  supply; quantity supplied

Question 5

. Use the figure Producer Surplus in the Market for Marzipan. Calculate producer surplus if the price of marzipan increases from $6.50 per pound to $9 per pound.
​
Figure: Producer Surplus in the Market for Marzipan

Accepted Answer

$16 - $7.50 = $8.50.

Question 6

The difference between the price received from selling a product and the marginal cost of producing that product is called:

Accepted Answer

A)  profit. 
B)  producer surplus. 
C)  deadweight loss. 
D)  consumer surplus. 
A)  profit. 
B)  producer surplus. 
C)  deadweight loss. 
D)  consumer surplus.

Question 7

Use the figure The Supply Curve. What is represented by the movement from point X to point Y?
​
Figure: The Supply Curve

Accepted Answer

A)  a decrease in quantity supplied 
B)  an increase in quantity supplied 
C)  an increase in supply 
D)  a decrease in supply 
A)  a decrease in quantity supplied 
B)  an increase in quantity supplied 
C)  an increase in supply 
D)  a decrease in supply

Question 8

Suppose that ideal weather conditions, including optimal rainfall, have created an enormous soybean crop in the United States. How would this affect the supply of soybeans in the United States?

Accepted Answer

A)  There would be a downward movement to the left along a supply curve. 
B)  There would be a shift to the left of the supply curve. 
C)  There would be a shift to the right of the supply curve. 
D)  There would be an upward movement to the right along a supply curve. 
A)  There would be a downward movement to the left along a supply curve. 
B)  There would be a shift to the left of the supply curve. 
C)  There would be a shift to the right of the supply curve. 
D)  There would be an upward movement to the right along a supply curve.

Question 9

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $0.50, how much total producer surplus is earned by these three sellers?
​

Accepted Answer

A)  $1.50 
B)  $1 
C)  $0.50 
D)  $0 
A)  $1.50 
B)  $1 
C)  $0.50 
D)  $0

Question 10

What is the marginal cost of a good?

Accepted Answer

A)  the cost of producing a typical unit 
B)  the cost of producing one more unit 
C)  the variable costs of producing a good 
D)  the per-unit costs of producing a good 
A)  the cost of producing a typical unit 
B)  the cost of producing one more unit 
C)  the variable costs of producing a good 
D)  the per-unit costs of producing a good

Question 11

Use the table Marginal Cost of Producing Candles. What is the producer surplus earned on the second unit of production if the price of this good is $1.75?
​

Accepted Answer

A)  $0 
B)  $0.75 
C)  $1.00 
D)  $0.25 
A)  $0 
B)  $0.75 
C)  $1.00 
D)  $0.25

Question 12

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $8, how many mittens will Eliza supply, and how much producer surplus will Eliza earn?
​

Accepted Answer

A)  four mittens supplied and $3 of producer surplus 
B)  three mittens supplied and $12 of producer surplus 
C)  four mittens supplied and $0 of producer surplus 
D)  four mittens supplied and $12 of producer surplus 
A)  four mittens supplied and $3 of producer surplus 
B)  three mittens supplied and $12 of producer surplus 
C)  four mittens supplied and $0 of producer surplus 
D)  four mittens supplied and $12 of producer surplus

Question 13

Use the figure The Supply Curve II. The supply curve of a good has changed as shown in this graph in response to an increase in the price of another good. These two goods must be:
​
Figure: The Supply Curve II

Accepted Answer

A)  complements in production. 
B)  complements in consumption. 
C)  substitutes in production. 
D)  substitutes in consumption. 
A)  complements in production. 
B)  complements in consumption. 
C)  substitutes in production. 
D)  substitutes in consumption.

Question 14

. Use the figure Producer Surplus in the Market for Marzipan II. What is producer surplus at a price of $9 per pound?
​
Figure: Producer Surplus in the Market for Marzipan II

Accepted Answer

A)  $9 
B)  $8 
C)  $20 
D)  $16 
A)  $9 
B)  $8 
C)  $20 
D)  $16

Question 15

Which of the following would shift the supply of pumpkin pie to the right?

Accepted Answer

A)  an increase in the price of pumpkin pie 
B)  a decrease in the price of pumpkins 
C)  an increase in the wages paid to labor on pumpkin farms 
D)  an increase in the price of sugar, a key ingredient in pumpkin pie 
A)  an increase in the price of pumpkin pie 
B)  a decrease in the price of pumpkins 
C)  an increase in the wages paid to labor on pumpkin farms 
D)  an increase in the price of sugar, a key ingredient in pumpkin pie

Question 16

_____ is the amount by which the price exceeds the marginal cost of each unit sold.

Accepted Answer

A)  Profit 
B)  Marginal revenue 
C)  Producer surplus 
D)  Consumer surplus 
A)  Profit 
B)  Marginal revenue 
C)  Producer surplus 
D)  Consumer surplus

Question 17

. Use the figure Producer Surplus in the Market for Marzipan. What is the minimum price that sellers must get to earn at least $9 in producer surplus?
​
Figure: Producer Surplus in the Market for Marzipan

Accepted Answer

The answer of . Use the figure Producer Surplus in...

Question 18

An increase in the production of one good has led to an increase the supply of another good. What are these two goods?

Accepted Answer

A)  substitutes in production 
B)  substitutes in consumption 
C)  complements in production 
D)  complements in consumption 
A)  substitutes in production 
B)  substitutes in consumption 
C)  complements in production 
D)  complements in consumption

Question 19

The law of supply states that:

Accepted Answer

A)  ceteris paribus, sellers respond to higher prices by lowering production. 
B)  all else equal, the price of a good and the quantity supplied of a good are positively related. 
C)  supply creates its own demand. 
D)  buyer will purchase a good at whatever price the seller sets. 
A)  ceteris paribus, sellers respond to higher prices by lowering production. 
B)  all else equal, the price of a good and the quantity supplied of a good are positively related. 
C)  supply creates its own demand. 
D)  buyer will purchase a good at whatever price the seller sets.

Question 20

What is a supply curve?

Accepted Answer

A)  a curve that illustrates the relationship between the price of a good and the quantity that people are willing to buy 
B)  a curve that illustrates the relationship between the price of a good or service and the quantity that firms are willing to sell 
C)  a table that shows the quantities that sellers are willing to sell at various prices 
D)  a table that shows the quantities that people are willing to buy at various prices 
A)  a curve that illustrates the relationship between the price of a good and the quantity that people are willing to buy 
B)  a curve that illustrates the relationship between the price of a good or service and the quantity that firms are willing to sell 
C)  a table that shows the quantities that sellers are willing to sell at various prices 
D)  a table that shows the quantities that people are willing to buy at various prices

. Use the figure Producer Surplus in the Market for Marzipan. Calculate producer surplus if the price of marzipan is $8 per pound. Figure: Producer Surplus in the Market for Marzipan

. Use the figure Producer Surplus in the Market for Marzipan I. What is producer surplus at a price of $5 per pound? Figure: Producer Surplus in the Market for Marzipan I

Which of the following does NOT cause the supply curve to shift to the left?

Good A and good B are complements in production. If the price of good A increases, then the _ of good A increases, and the _ of good B increases.

. Use the figure Producer Surplus in the Market for Marzipan. Calculate producer surplus if the price of marzipan increases from $6.50 per pound to $9 per pound. Figure: Producer Surplus in the Market for Marzipan

The difference between the price received from selling a product and the marginal cost of producing that product is called:

Use the figure The Supply Curve. What is represented by the movement from point X to point Y? Figure: The Supply Curve

Suppose that ideal weather conditions, including optimal rainfall, have created an enormous soybean crop in the United States. How would this affect the supply of soybeans in the United States?

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $0.50, how much total producer surplus is earned by these three sellers?

What is the marginal cost of a good?

Use the table Marginal Cost of Producing Candles. What is the producer surplus earned on the second unit of production if the price of this good is $1.75?

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $8, how many mittens will Eliza supply, and how much producer surplus will Eliza earn?

Use the figure The Supply Curve II. The supply curve of a good has changed as shown in this graph in response to an increase in the price of another good. These two goods must be: Figure: The Supply Curve II

. Use the figure Producer Surplus in the Market for Marzipan II. What is producer surplus at a price of $9 per pound? Figure: Producer Surplus in the Market for Marzipan II

Which of the following would shift the supply of pumpkin pie to the right?

_____ is the amount by which the price exceeds the marginal cost of each unit sold.

. Use the figure Producer Surplus in the Market for Marzipan. What is the minimum price that sellers must get to earn at least $9 in producer surplus? Figure: Producer Surplus in the Market for Marzipan

An increase in the production of one good has led to an increase the supply of another good. What are these two goods?

The law of supply states that:

What is a supply curve?

Foundations of Economics

Extension: Understanding Graphs

Markets and Economies

Demand

Market Equilibrium

Elasticity

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

Exam 4: Supply

. Use the figure Producer Surplus in the Market for Marzipan. Calculate producer surplus if the price of marzipan is $8 per pound. ​ Figure: Producer Surplus in the Market for Marzipan

. Use the figure Producer Surplus in the Market for Marzipan I. What is producer surplus at a price of $5 per pound? ​ Figure: Producer Surplus in the Market for Marzipan I

Which of the following does NOT cause the supply curve to shift to the left?

Good A and good B are complements in production. If the price of good A increases, then the _____ of good A increases, and the _____ of good B increases.

. Use the figure Producer Surplus in the Market for Marzipan. Calculate producer surplus if the price of marzipan increases from $6.50 per pound to $9 per pound. ​ Figure: Producer Surplus in the Market for Marzipan

The difference between the price received from selling a product and the marginal cost of producing that product is called:

Use the figure The Supply Curve. What is represented by the movement from point X to point Y? ​ Figure: The Supply Curve

Suppose that ideal weather conditions, including optimal rainfall, have created an enormous soybean crop in the United States. How would this affect the supply of soybeans in the United States?

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $0.50, how much total producer surplus is earned by these three sellers? ​

What is the marginal cost of a good?

Use the table Marginal Cost of Producing Candles. What is the producer surplus earned on the second unit of production if the price of this good is $1.75? ​

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $8, how many mittens will Eliza supply, and how much producer surplus will Eliza earn? ​

Use the figure The Supply Curve II. The supply curve of a good has changed as shown in this graph in response to an increase in the price of another good. These two goods must be: ​ Figure: The Supply Curve II

. Use the figure Producer Surplus in the Market for Marzipan II. What is producer surplus at a price of $9 per pound? ​ Figure: Producer Surplus in the Market for Marzipan II

Which of the following would shift the supply of pumpkin pie to the right?

_____ is the amount by which the price exceeds the marginal cost of each unit sold.

. Use the figure Producer Surplus in the Market for Marzipan. What is the minimum price that sellers must get to earn at least $9 in producer surplus? ​ Figure: Producer Surplus in the Market for Marzipan

An increase in the production of one good has led to an increase the supply of another good. What are these two goods?

The law of supply states that:

What is a supply curve?

Foundations of Economics

Extension: Understanding Graphs

Markets and Economies

Demand

Market Equilibrium

Elasticity

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

. Use the figure Producer Surplus in the Market for Marzipan. Calculate producer surplus if the price of marzipan is $8 per pound. Figure: Producer Surplus in the Market for Marzipan

. Use the figure Producer Surplus in the Market for Marzipan I. What is producer surplus at a price of $5 per pound? Figure: Producer Surplus in the Market for Marzipan I

Good A and good B are complements in production. If the price of good A increases, then the _ of good A increases, and the _ of good B increases.

. Use the figure Producer Surplus in the Market for Marzipan. Calculate producer surplus if the price of marzipan increases from $6.50 per pound to $9 per pound. Figure: Producer Surplus in the Market for Marzipan

Use the figure The Supply Curve. What is represented by the movement from point X to point Y? Figure: The Supply Curve

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $0.50, how much total producer surplus is earned by these three sellers?

Use the table Marginal Cost of Producing Candles. What is the producer surplus earned on the second unit of production if the price of this good is $1.75?

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $8, how many mittens will Eliza supply, and how much producer surplus will Eliza earn?

Use the figure The Supply Curve II. The supply curve of a good has changed as shown in this graph in response to an increase in the price of another good. These two goods must be: Figure: The Supply Curve II

. Use the figure Producer Surplus in the Market for Marzipan II. What is producer surplus at a price of $9 per pound? Figure: Producer Surplus in the Market for Marzipan II

. Use the figure Producer Surplus in the Market for Marzipan. What is the minimum price that sellers must get to earn at least $9 in producer surplus? Figure: Producer Surplus in the Market for Marzipan