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

Refer to Table 7-14. If the sellers bid against each other for the right to sell the good to a single consumer, then the producer surplus will be

Table 7-17 -Refer to Table 7-17. Both the demand curve and the supply curve are straight lines. If the price is $4 but only 6 units are bought and sold, total surplus will be

Suppose Lauren, Leslie and Lydia all purchase bulletin boards for their rooms for $15 each. Lauren's willingness to pay was $35, Leslie's willingness to pay was $25, and Lydia's willingness to pay was $30. Total consumer surplus for these three would be

The marginal seller is the seller

Figure 7-20 -Refer to Figure 7-20. For quantities less than M, the value to the marginal buyer is

George produces cupcakes. His production cost is $10 per dozen. He sells the cupcakes for $16 per dozen. His producer surplus per dozen cupcakes is

Suppose that the equilibrium price in the market for widgets is $5. If a law increased the minimum legal price for widgets to $6,

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

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

Table 7-4 The numbers in Table 7-1 reveal the maximum willingness to pay for a ticket to a Chicago Cubs vs. St. Louis Cardinal's baseball game at Wrigley Field. -Refer to Table 7-4. If you have a ticket that you sell to the group in an auction, what will be the selling price?

Table 7-16 The following table represents the costs of five possible sellers. Seller Cost $) -Refer to Table 7-16. If each producer has one unit available for sale, and if the market equilibrium price is $70, how much is the combined total cost of all participating sellers in the market?

Figure 7-34 -Refer to Figure 7-34. Suppose the government imposes a price floor at $10 per unit in this market. With the price floor, how much is total producer surplus assuming those producers with the lowest cost are the ones who supply the market?

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?

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 there is only one unit of the good available for purchase, and if the buyers bid against each other for the right to purchase it, then the good will sell for

Abraham drinks Mountain Dew. He can buy as many cans of Mountain Dew as he wishes at a price of $0.55 per can. On a particular day, he is willing to pay $0.95 for the first can, $0.80 for the second can, $0.60 for the third can, and $0.40 for the fourth can. Assume Abraham is rational in deciding how many cans to buy. His consumer surplus is

In a market, the marginal buyer is the buyer

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

Figure 7-22 -Refer to Figure 7-22. The efficient price is

Figure 7-3 -Refer to Figure 7-3. When the price rises from P1 to P2, consumer surplus

Janine would be willing to pay $50 to see Les Misérables, but she buys a ticket for only $30. Janine values the performance at