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

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 is $0.90, then the market quantity of oranges demanded per day is

Kelly is willing to pay $5.20 for a gallon of gasoline. The price of gasoline at her local gas station is $3.80. If she purchases ten gallons of gasoline, then Kelly's consumer surplus is

A drought in California destroys many red grapes. As a result of the drought, the consumer surplus in the market for red grapes

Producer surplus is the amount a seller is paid minus the cost of production.

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

All else equal, what happens to consumer surplus if the price of a good increases?

If the demand for light bulbs increases, producer surplus in the market for light bulbs

Table 7-7 -Refer to Table 7-7. You have two essentially identical 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. You hold an auction to sell the two tickets. Michael and Earvin each offer to pay $360 for a ticket, and you sell them the two tickets. What is the total consumer surplus in the market?

Table 7-2 This table refers to five possible buyers' willingness to pay for a case of Vanilla Coke. -Refer to Table 7-2. If the price of Vanilla Coke is $6.90, who will purchase the good?

Tom tunes pianos in his spare time for extra income. Buyers of his service are willing to pay $155 per tuning. One particular week, Tom is willing to tune the first piano for $120, the second piano for $125, the third piano for $140, and the fourth piano for $160. Assume Tom is rational in deciding how many pianos to tune. His producer surplus is

The particular price that results in quantity supplied being equal to quantity demanded is the best price because it

Producer surplus measures the

Which of the following will cause a decrease in producer surplus?

Which of the following statements is not correct?

Figure 7-7 -Refer to Figure 7-7. What is the consumer surplus if the price is $100?

Figure 7-33 -Refer to Figure 7-33. How much is total consumer surplus in this market at the equilibrium price?

Economists typically measure efficiency using

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 these four producers bid in an auction to supply one unit to a consumer, at what price will the good be sold?

Bill created a new software program he is willing to sell for $300. He sells his first copy and enjoys a producer surplus of $250. What is the price paid for the software?

Refer to Figure 7-11. If the supply curve is S and the demand curve shifts from D to D', what is the change in producer surplus?