Question 1

Table 7-3
  
-Refer to Table 7-3.If the price is $1100,who would be willing to supply the product

Accepted Answer

A) Dale and Jill 
B) Dale, Jill, and Denise 
C) Denise, Catherine, and Jackson 
D) Catherine and Jackson 
A) Dale and Jill 
B) Dale, Jill, and Denise 
C) Denise, Catherine, and Jackson 
D) Catherine and Jackson

Question 2

Figure 7-2
  
-Refer to Figure 7-2.Which area represents the increase in consumer surplus when the price falls from P₁ to P₂

Accepted Answer

A) ABD 
B) ACF 
C) BCED 
D) BCFD 
A) ABD 
B) ACF 
C) BCED 
D) BCFD

Question 3

Market demand is given as QD = 75 - P.Market supply is given as QS = 3P + 15.In a perfectly competitive equilibrium,what will be the value of consumer surplus

Accepted Answer

A) $900 
B) $1125 
C) $1800 
D) $2400 
A) $900 
B) $1125 
C) $1800 
D) $2400

Question 4

Figure 7-6
​
  
-Refer to Figure 7-6.If this market were currently at a quantity of 110,what would we know

Accepted Answer

A) The producers' willingness to sell is greater than the consumers' willingness to pay 
B) The value to buyers is greater than the cost to sellers. 
C) The cost to sellers is greater than the value to buyers. 
D) Consumer surplus would be greater than producer surplus. 
A) The producers' willingness to sell is greater than the consumers' willingness to pay 
B) The value to buyers is greater than the cost to sellers. 
C) The cost to sellers is greater than the value to buyers. 
D) Consumer surplus would be greater than producer surplus.

Question 5

Market demand is given as QD = 100 - 2P.Market supply is given as QS = P + 10.In a perfectly competitive equilibrium,what will be the value of consumer surplus

Accepted Answer

A) $120 
B) $200 
C) $400 
D) $800 
A) $120 
B) $200 
C) $400 
D) $800

Question 6

Figure 7-4
  
-Refer to Figure 7-4.When the price is at P 2,what is producer surplus

Accepted Answer

A) A 
B) A + C 
C) A + B + C 
D) C + D 
A) A 
B) A + C 
C) A + B + C 
D) C + D

Question 7

Welfare economics is the study of the welfare system.

Accepted Answer

A) True 
 B)False

Question 8

On a graph,which area is consumer surplus

Accepted Answer

A) the area below the demand curve to the left of the equilibrium price 
B) the area below the demand curve to the right of the equilibrium price 
C) the area below the price and above the supply curve 
D) the area below the demand curve and above the price 
A) the area below the demand curve to the left of the equilibrium price 
B) the area below the demand curve to the right of the equilibrium price 
C) the area below the price and above the supply curve 
D) the area below the demand curve and above the price

Question 9

Suppose that the equilibrium price in the market for widgets is $8.If a law reduced the maximum legal price for widgets to $7,what would be the result

Accepted Answer

A) Any possible increase in consumer surplus would be larger than the loss of producer surplus. 
B) Any possible increase in consumer surplus would be smaller than the loss of producer surplus. 
C) The resulting increase in producer surplus would be larger than any possible loss of consumer surplus. 
D) The resulting increase in producer surplus would be smaller than any possible loss of consumer surplus. 
A) Any possible increase in consumer surplus would be larger than the loss of producer surplus. 
B) Any possible increase in consumer surplus would be smaller than the loss of producer surplus. 
C) The resulting increase in producer surplus would be larger than any possible loss of consumer surplus. 
D) The resulting increase in producer surplus would be smaller than any possible loss of consumer surplus.

Question 10

What is consumer surplus

Accepted Answer

A) a buyer's willingness to pay minus the price 
B) a buyer's willingness to pay plus the price 
C) the price of the product minus the buyer's willingness to pay 
D) the price of the product plus the buyer's willingness to pay 
A) a buyer's willingness to pay minus the price 
B) a buyer's willingness to pay plus the price 
C) the price of the product minus the buyer's willingness to pay 
D) the price of the product plus the buyer's willingness to pay

Question 11

What would a simultaneous increase in both the demand for and the supply of electric bicycles imply

Accepted Answer

A) Both the value of electric bicycles to consumers and the cost of producing electric bicycles have increased. 
B) Both the value of electric bicycles to consumers and the cost of producing electric bicycles have decreased. 
C) The value of electric bicycles to consumers has decreased and the cost of producing electric bicycles has increased. 
D) The value of electric bicycles to consumers has increased and the cost of producing electric bicycles has decreased. 
A) Both the value of electric bicycles to consumers and the cost of producing electric bicycles have increased. 
B) Both the value of electric bicycles to consumers and the cost of producing electric bicycles have decreased. 
C) The value of electric bicycles to consumers has decreased and the cost of producing electric bicycles has increased. 
D) The value of electric bicycles to consumers has increased and the cost of producing electric bicycles has decreased.

Question 12

Total surplus = Value to buyers - Cost to sellers.

Accepted Answer

A) True 
 B)False

Question 13

Figure 7-7
  
-Refer to Figure 7-7.Which segment represents sellers whose costs are less than price

Accepted Answer

A) AC 
B) BC 
C) CD 
D) CE 
A) AC 
B) BC 
C) CD 
D) CE

Question 14

Market demand is given as QD = 80 - P.Market supply is given as QS = 3P.In a perfectly competitive equilibrium,what will be the value of producer surplus

Accepted Answer

A) $168.75 
B) $600.00 
C) $875.00 
D) $1800.00 
A) $168.75 
B) $600.00 
C) $875.00 
D) $1800.00

Question 15

Figure 7-3
  
-Refer to Figure 7-3.Which area represents producer surplus at a price of P₂

Accepted Answer

A) ACF 
B) BCE 
C) ABED 
D) DEF 
A) ACF 
B) BCE 
C) ABED 
D) DEF

Question 16

Economists generally believe that although there may be advantages to society from ticket scalping,the costs to society of this activity outweigh the benefits.

Accepted Answer

A) True 
 B)False

Question 17

The Ministry of Health announces that eating chocolate increases tooth decay.As a result,what happens to the equilibrium market price of chocolate and producer surplus

Accepted Answer

A) They both increase. 
B) The equilibrium market price increases, and producer surplus decreases. 
C) They both decrease. 
D) The equilibrium market price decreases, and producer surplus increases. 
A) They both increase. 
B) The equilibrium market price increases, and producer surplus decreases. 
C) They both decrease. 
D) The equilibrium market price decreases, and producer surplus increases.

Question 18

The equilibrium of supply and demand in a market maximizes the total benefits received by buyers and sellers.

Accepted Answer

A) True 
 B)False

Question 19

In a competitive market,sales go to those producers who are willing to supply the product at the lowest price.

Accepted Answer

A) True 
 B)False

Question 20

What does producer surplus measure

Accepted Answer

A) the well-being of sellers 
B) production costs 
C) the well-being of buyers and sellers 
D) unsold inventories 
A) the well-being of sellers 
B) production costs 
C) the well-being of buyers and sellers 
D) unsold inventories

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

Table 7-3 -Refer to Table 7-3.If the price is $1100,who would be willing to supply the product

Figure 7-2 -Refer to Figure 7-2.Which area represents the increase in consumer surplus when the price falls from P₁ to P₂

Market demand is given as QD = 75 - P.Market supply is given as QS = 3P + 15.In a perfectly competitive equilibrium,what will be the value of consumer surplus

Figure 7-6 ​ -Refer to Figure 7-6.If this market were currently at a quantity of 110,what would we know

Market demand is given as QD = 100 - 2P.Market supply is given as QS = P + 10.In a perfectly competitive equilibrium,what will be the value of consumer surplus

Figure 7-4 -Refer to Figure 7-4.When the price is at P 2,what is producer surplus

Welfare economics is the study of the welfare system.

On a graph,which area is consumer surplus

Suppose that the equilibrium price in the market for widgets is $8.If a law reduced the maximum legal price for widgets to $7,what would be the result

What is consumer surplus

What would a simultaneous increase in both the demand for and the supply of electric bicycles imply

Total surplus = Value to buyers - Cost to sellers.

Figure 7-7 -Refer to Figure 7-7.Which segment represents sellers whose costs are less than price

Market demand is given as QD = 80 - P.Market supply is given as QS = 3P.In a perfectly competitive equilibrium,what will be the value of producer surplus

Figure 7-3 -Refer to Figure 7-3.Which area represents producer surplus at a price of P₂

Economists generally believe that although there may be advantages to society from ticket scalping,the costs to society of this activity outweigh the benefits.

The Ministry of Health announces that eating chocolate increases tooth decay.As a result,what happens to the equilibrium market price of chocolate and producer surplus

The equilibrium of supply and demand in a market maximizes the total benefits received by buyers and sellers.

In a competitive market,sales go to those producers who are willing to supply the product at the lowest price.

What does producer surplus measure

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 of Microeconomics

Filters

Market demand is given as Q_D= 75 - P.Market supply is given as Q_S= 3P + 15.In a perfectly competitive equilibrium,what will be the value of consumer surplus

Figure 7-6 -Refer to Figure 7-6.If this market were currently at a quantity of 110,what would we know

Market demand is given as Q_D= 100 - 2P.Market supply is given as Q_S= P + 10.In a perfectly competitive equilibrium,what will be the value of consumer surplus

Market demand is given as Q_D= 80 - P.Market supply is given as Q_S= 3P.In a perfectly competitive equilibrium,what will be the value of producer surplus