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

Table 7-10 The only four consumers in a market have the following willingness to pay for a good: Buyer Willingness to Pay -Refer to Table 7-10. If the market price for the good is $20, who will purchase the good?

Scenario 7-2 Suppose market demand and market supply are given by the equations: -Refer to Scenario 7-2. Suppose a reduction in input prices shifts the market supply curve to By how much does total producer surplus increase as a result of this supply shift?

Table 7-19 The following table shows the cost of producing a good for the only four producers in a market. -Refer to Table 7-19. If the market equilibrium price is $28, what is total producer surplus in the market?

Figure 7-24 -Refer to Figure 7-24. At equilibrium, producer surplus is

If the government imposes a binding price floor in a market, then the consumer surplus in that market will decrease.

Figure 7-26 -Refer to Figure 7-26. At the equilibrium price, total surplus is

If an allocation of resources is efficient, then

Figure 7-17 -Refer to Figure 7-17. If the supply curve is S and the demand curve is D, what is total producer surplus at the equilibrium price?

If a consumer is willing and able to pay $20 for a particular good and if he pays $16 for the good, then for that consumer, consumer surplus amounts to