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

Figure 7-18 -Refer to Figure 7-18. Suppose the willingness to pay of the marginal buyer of the 3rd unit is $125. Then total surplus is maximized if

Figure 7-16 -Refer to Figure 7-16. Suppose the price of the good is $450. Then, on the first unit of the good that is sold, producer surplus is

Which tools allow economists to determine if the allocation of resources determined by free markets is desirable?

Table 7-6 For each of three potential buyers of apples, the table displays the willingness to pay for the first three apples of the day. Assume Xavier, Yadier, and Zavi are the only three buyers of apples, and only three apples can be supplied per day. -Refer to Table 7-6. If the market price of an apple increases from $1.40 to $1.60, then consumer surplus

Figure 7-27 -Refer to Figure 7-27. Buyers who value this good less than the equilibrium price are represented by which line segment?

Ticket scalping can increase total surplus in the market for tickets to sporting events.

Table 7-5 For each of three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Allison, Bob, and Charisse are the only three buyers of oranges, and only three oranges can be supplied per day. -Refer to Table 7-5. If the market price of an orange increases from $0.80 to $1.05, then consumer surplus

Table 7-20 -Refer to Table 7-20. How much is total consumer surplus at the equilibrium price in this market?

Figure 7-1 -Refer to Figure 7-1. The value of the good to consumers minus the cost of the good to consumers amounts to $325 if the price of the good is

If the demand for leather decreases, producer surplus in the leather market

If the current allocation of resources in the market for hammers is inefficient, then it must be the case that

Figure 7-24 -Refer to Figure 7-24. At equilibrium, total surplus is measured by the area

Figure 7-21 -Refer to Figure 7-21. Which area represents consumer surplus when the price is P1?

When markets fail, public policy can

Table 7-7 -Refer to Table 7-7. You are selling extra tickets to the Midwest Regional Sweet 16 game in the men's NCAA basketball tournament. The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game. Which of the following graphs represents the market demand curve?

Table 7-18 The following table shows the willingness to pay for a good for the only four consumers in a market. -Refer to Table 7-18. If the price of the good is $20, how much is the total consumer surplus?

Figure 7-27 -Refer to Figure 7-27. Sellers whose costs are greater than the equilibrium price are represented by segment

Figure 7-15 -Refer to Figure 7-15. When the price rises from P1 to P2, which area represents the increase in producer surplus due to new producers entering the market?

Figure 7-3 -Refer to Figure 7-3. Area C represents the

At the equilibrium price of a good, the good will be purchased by those buyers who