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

Table 7-3 The only four consumers in a market have the following willingness to pay for a good: -Refer to Table 7-3.If there is only one unit of the good and if the buyers bid against each other for the right to purchase it,then the good will sell for

Welfare economics is the study of

Consumer surplus

Figure 7-1 -Refer to Figure 7-1.When the price rises from P1 to P2,which of the following statements is not true?

Motor oil and gasoline are complements.If the price of motor oil increases,consumer surplus in the gasoline market

Figure 7-7 -Refer to Figure 7-7.Which area represents the increase in producer surplus when the price rises from P1 to P2?

Figure 7-3 -Refer to Figure 7-3.If the price of the good is $5,then consumer surplus is

Efficiency is related to the size of the economic pie,whereas equality is related to how the pie gets sliced and distributed.

Table 7-6 The following table represents the costs of five possible sellers. -Refer to Table 7-6.Suppose each of the five sellers can supply at most one unit of the good.The market quantity supplied is exactly 4 if the price is

Coffee and tea are substitutes.Bad weather that sharply reduces the coffee bean harvest would

Which of the following equations is not valid?

Joel has a 1966 Mustang,which he sells to Susie,an avid car collector.Susie is pleased since she paid $8,000 for the car but would have been willing to pay $11,000 for the car.Susie's consumer surplus is $2,000.

A simultaneous increase in both the demand for MP3 players and the supply of MP3 players would imply that

Figure 7-17 -Refer to Figure 7-17.At equilibrium,total surplus is

Table 7-6 The following table represents the costs of five possible sellers. -Refer to Table 7-6.If the price is $775,who would be willing to supply the product?

Figure 7-15 -Refer to Figure 7-15.At the equilibrium price,producer surplus is

Table 7-7 The only four producers in a market have the following cost: -Refer to Table 7-7.If Charlie,Quinn,Wrex,and Maxine sell the good,and the resulting producer surplus is $700,then the price must have been

Producer surplus is the

Each seller of a product is willing to sell as long as the price he or she can receive is greater than the opportunity cost of producing the product.

Figure 7-16 -Refer to Figure 7-16.At equilibrium,total surplus is represented by the area