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

Table 7-4 -Refer to Table 7-4.At the equilibrium price,what would consumer surplus be

When technology improves in the ice cream industry,what happens to consumer surplus

What are externalities

Chad is willing to pay $5.00 to get his second cup of morning latte.He finds a vendor selling latte for $3.75.What is Chad's consumer surplus

Figure 7-1 -Refer to Figure 7-1.At the price of P₂,what is consumer surplus

Answer the following questions based on the graph that represents JR's weekly demand for ribs at Judy's Rib Shack. a.At equilibrium price,how many ribs would JR be willing to purchase b.How much is JR willing to pay for 20 ribs c.How much would JR's consumer surplus be at the equilibrium price d.At the equilibrium price,how many ribs would Judy be willing to sell e.How much must the price of ribs be for Judy to supply 20 ribs to the market f.At the equilibrium price,what is total surplus in the market g.If the price of ribs rose to $10,what would happen to JR's consumer surplus h.If the price of ribs fell to $5,what would happen to Judy's producer surplus i.Explain why the graph shown verifies the fact that the market equilibrium (quantity) maximizes the sum of producer and consumer surplus.

Figure 7-1 -Refer to Figure 7-1.What does area C represent

What do the decisions of buyers and sellers that affect people who are not participants in the market create

Table 7-1 -Refer to Table 7-1.If the table represents the willingness to pay of 4 buyers and the price of the product is $25,who would be willing to purchase the product

Figure 7-8 -Refer to the above figure.At the market-clearing equilibrium,which area represents total surplus

Figure 7-1 -Refer to Figure 7-1.When the price rises from P₁ to P₂,what happens to consumer surplus

Figure 7-6 ​ -Refer to Figure 7-6.At the equilibrium price,what would consumer surplus be

What is market failure

Figure 7-2 -Refer to Figure 7-2.When the price falls from P₁ to P₂,which area represents the increase in consumer surplus to new buyers entering the market

What does the "invisible hand" refer to

To what does positive analysis refer

Janine would be willing to pay $100 to see Cirque du Soleil,but buys a ticket for only $70.At what amount does Janine value the performance

Suppose there is an early freeze in California that ruins the lemon crop.What happens to consumer surplus in the market for lemons

Figure 7-6 ​ -Refer to Figure 7-6.Assume demand increases and as a result,equilibrium price increases to $22 and equilibrium quantity increases to 110.What would be the increase in producer surplus to producers already in the market

Figure 7-5 -Refer to Figure 7-5.What area represents total surplus in the market when the price is P₁