Use the following to answer questions : \[\begin{array}{l} \text { Table: Willingness to Pay for Peanuts }\\ \begin{array} { l c } \hline \text { Consumer } & \begin{array} { c } \text { Willingness } \\ \text { to Pay in Dollars } \end{array} \\ \hline \text { Alvin } & \$ 5 \\ \text { Theodore } & 3 \\ \text { Simon } & 6 \\ \text { Dave } & 2 \\ \text { George } & 10 \\ \hline \end{array} \end{array}\] -(Table: Willingness to Pay for Peanuts)Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $2,_____ would purchase a bag.

A) all of the consumers. B) everyone except Dave. C) everyone except George. D) no one. A) all of the consumers. B) everyone except Dave. C) everyone except George. D) no one. A

Use the following to answer question 223: \[\begin{array}{l} \text { Table: Quantity Supplied and Quantity Demanded }\\ \begin{array} { r c c } \hline \text { Price } & \text { Quantity Demanded } & \text { Quantity Supplied } \\ \hline \$ 0 & 100 & 25 \\ 5 & 90 & 40 \\ 10 & 80 & 55 \\ 15 & 70 & 70 \\ 20 & 60 & 85 \\ \hline \end{array} \end{array}\] -(Table: Quantity Supplied and Quantity Demanded)Using the table Quantity Supplied and Quantity Demanded,if this market is in equilibrium and the demand and supply curves are linear,then the value of consumer surplus is:

A) $1 225. B) $2 450. C) $4 900. D) $1 500. A) $1 225. B) $2 450. C) $4 900. D) $1 500.

Use the following to answer questions : \[\begin{array}{l} \text { Table: Willingness to Pay for Peanuts }\\ \begin{array} { l c } \hline \text { Consumer } & \begin{array} { c } \text { Willingness } \\ \text { to Pay in Dollars } \end{array} \\ \hline \text { Alvin } & \$ 5 \\ \text { Theodore } & 3 \\ \text { Simon } & 6 \\ \text { Dave } & 2 \\ \text { George } & 10 \\ \hline \end{array} \end{array}\] -(Table: Willingness to Pay for Peanuts)Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $3,the total value of consumer surplus is equal to:

A) $12. B) $26. C) $10. D) $21. A) $12. B) $26. C) $10. D) $21.

Use the following to answer question 25: \[\begin{array}{l} \text { Table: Economics Textbooks }\\ \begin{array} { l c } \hline \text { Consumer } & \begin{array} { c } \text { Price the Consumer } \\ \text { Is Willing to Pay } \end{array} \\ \hline \text { Eric } & \$ 175 \\ \text { Margaret } & 150 \\ \text { Leah } & 100 \\ \text { Michael } & 75 \\ \hline \end{array} \end{array}\] -(Table: Economics Textbooks)The table Economics Textbooks shows how much money four consumers would be willing to pay for a new economics textbook.If the price of the textbook is $100,what is the total consumer surplus received by these consumers?

A) $125 B) $500 C) $100 D) $75 A) $125 B) $500 C) $100 D) $75

Use the following to answer questions : \[\begin{array}{l} \text { Table: Willingness to Pay for Basketball Sneakers }\\ \begin{array} { l c } \hline \text { Consumer } & \text { Willingness to Pay } \\ \hline \text { Jamichael } & \$ 150 \\ \text { Corey } & 140 \\ \text { Rudy } & 120 \\ \text { Ray } & 100 \\ \text { Javon } & 80 \\ \hline \end{array} \end{array}\] -(Table: Willingness to Pay for Basketball Sneakers)The table Willingness to Pay for Basketball Sneakers shows each player's willingness to pay for basketball sneakers.Assume that each player wants to buy at most one pair of sneakers.If the price of basketball sneakers is $125,which players will purchase sneakers?

A) Jamichael and Javon B) Jamichael and Corey C) Jamichael,Corey,and Rudy D) Jamichael,Corey,Rudy,and Ray A) Jamichael and Javon B) Jamichael and Corey C) Jamichael,Corey,and Rudy D) Jamichael,Corey,Rudy,and Ray

Exam 4: Consumer and Producer Surplus

Use the following to answer questions : Table: Willingness to Pay for Peanuts Consumer Willingness to Pay in Dollars Alvin \ 5 Theodore 3 Simon 6 Dave 2 George 10 -(Table: Willingness to Pay for Peanuts)Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $2,_____ would purchase a bag.

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

A

If the government intervened in the market by lowering the price of a good below the equilibrium price,which scenario would NOT occur?

Free

(Multiple Choice)

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Question 2

Correct Answer:

Verified

C

An increase in the consumer surplus in the market for milkshakes may result from a(n)_ in the _ of milkshakes.

Free

(Multiple Choice)

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(31)

Question 3

Correct Answer:

Verified

B

Use the following to answer question 223: Table: Quantity Supplied and Quantity Demanded Price Quantity Demanded Quantity Supplied \ 0 100 25 5 90 40 10 80 55 15 70 70 20 60 85 -(Table: Quantity Supplied and Quantity Demanded)Using the table Quantity Supplied and Quantity Demanded,if this market is in equilibrium and the demand and supply curves are linear,then the value of consumer surplus is:

(Multiple Choice)

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Question 4

Use the following to answer questions : Figure: The Market for Hamburgers -(Figure: The Market for Hamburgers)The figure The Market for Hamburgers shows the weekly market for hamburgers in Moncton.If the price of a burger is $2,consumer surplus will equal:

(Multiple Choice)

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Question 5

Use the following to answer questions : $\text {Table: Consumer Surplus and }$ $\text {Phantom Tickets}$ Student Willingness to Pay Jessica \ 150 Jacquelyn 125 Brad 105 Robert 60 Gwen 25 -(Table: Consumer Surplus and Phantom Tickets)The table Consumer Surplus and Phantom Tickets shows each student's willingness to pay for a Phantom of the Opera ticket.Assume that each student wants to buy one ticket.If the price of a ticket to see Phantom of the Opera is $50,then Robert's consumer surplus is:

(Multiple Choice)

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Question 6

Suppose purchases do not occur because the value of the good to the potential seller exceeds the value to a potential consumer.This situation will occur in:

(Multiple Choice)

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Question 7

Suppose the market demand for TV remotes is given by the equation Q_d = 100 - 2P,where P is the price and Q_d is the number of TV remotes.If the market price of TV remotes is $40,then the quantity demanded equals _ and the value of consumer surplus is _.

(Multiple Choice)

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Question 8

Assume that the supply curve for corn is upward sloping.In the market for corn,a primary input in the production of ethanol,total surplus _____ when the price of ethanol increases.

(Multiple Choice)

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Question 9

We can measure the total consumer surplus for good X as the:

(Multiple Choice)

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Question 10

When there is a positive amount of total surplus in a market,it means that the cost of producing the good is zero.

(True/False)

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Question 11

Use the following to answer questions : Table: Willingness to Pay for Peanuts Consumer Willingness to Pay in Dollars Alvin \ 5 Theodore 3 Simon 6 Dave 2 George 10 -(Table: Willingness to Pay for Peanuts)Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $3,the total value of consumer surplus is equal to:

(Multiple Choice)

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Question 12

One way to measure the gain to consumers from a drug that has the potential to reduce obesity is to measure what people are willing to pay for the good and subtract the amount they have to pay.

(True/False)

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Question 13

Coffee and tea are substitutes in consumption.If there is an increase in the price of coffee,assuming a positively sloped supply curve and a negatively sloped demand curve,total surplus in the tea market:

(Multiple Choice)

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Question 14

Use the following to answer question 25: Table: Economics Textbooks Consumer Price the Consumer Is Willing to Pay Eric \ 175 Margaret 150 Leah 100 Michael 75 -(Table: Economics Textbooks)The table Economics Textbooks shows how much money four consumers would be willing to pay for a new economics textbook.If the price of the textbook is $100,what is the total consumer surplus received by these consumers?

(Multiple Choice)

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Question 15

Well-defined property rights:

(Multiple Choice)

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Question 16

Use the following to answer questions : Table: Willingness to Pay for Basketball Sneakers Consumer Willingness to Pay Jamichael \ 150 Corey 140 Rudy 120 Ray 100 Javon 80 -(Table: Willingness to Pay for Basketball Sneakers)The table Willingness to Pay for Basketball Sneakers shows each player's willingness to pay for basketball sneakers.Assume that each player wants to buy at most one pair of sneakers.If the price of basketball sneakers is $125,which players will purchase sneakers?

(Multiple Choice)

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Question 17

Use the following to answer questions : Figure: Producer Surplus -(Figure: Producer Surplus)Look at the figure Producer Surplus.When the price falls from $45 to $35,producer surplus _ for a total producer surplus of _.

(Multiple Choice)

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Question 18

Prices above equilibrium on agricultural products like milk exist to maximize the consumer surplus.

(True/False)

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Question 19

Suppose the market demand curve for TV remotes is given by the equation Q_d = 100 - 2P,where P is the price and Q_d is the number of TV remotes demanded.If the market price of TV remotes is $10,then the quantity demanded equals _ and the value of consumer surplus is _.

(Multiple Choice)

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Question 20

If the government intervened in the market by lowering the price of a good below the equilibrium price,which scenario would NOT occur?

An increase in the consumer surplus in the market for milkshakes may result from a(n)_ in the _ of milkshakes.

Use the following to answer questions : Figure: The Market for Hamburgers -(Figure: The Market for Hamburgers)The figure The Market for Hamburgers shows the weekly market for hamburgers in Moncton.If the price of a burger is $2,consumer surplus will equal:

Suppose purchases do not occur because the value of the good to the potential seller exceeds the value to a potential consumer.This situation will occur in:

Suppose the market demand for TV remotes is given by the equation Q_d = 100 - 2P,where P is the price and Q_d is the number of TV remotes.If the market price of TV remotes is $40,then the quantity demanded equals _ and the value of consumer surplus is _.

Assume that the supply curve for corn is upward sloping.In the market for corn,a primary input in the production of ethanol,total surplus _____ when the price of ethanol increases.

We can measure the total consumer surplus for good X as the:

When there is a positive amount of total surplus in a market,it means that the cost of producing the good is zero.

One way to measure the gain to consumers from a drug that has the potential to reduce obesity is to measure what people are willing to pay for the good and subtract the amount they have to pay.

Coffee and tea are substitutes in consumption.If there is an increase in the price of coffee,assuming a positively sloped supply curve and a negatively sloped demand curve,total surplus in the tea market:

Well-defined property rights:

Use the following to answer questions : Figure: Producer Surplus -(Figure: Producer Surplus)Look at the figure Producer Surplus.When the price falls from $45 to $35,producer surplus _ for a total producer surplus of _.

Prices above equilibrium on agricultural products like milk exist to maximize the consumer surplus.

Suppose the market demand curve for TV remotes is given by the equation Q_d = 100 - 2P,where P is the price and Q_d is the number of TV remotes demanded.If the market price of TV remotes is $10,then the quantity demanded equals _ and the value of consumer surplus is _.

First Principles

Economic Models

Supply and Demand

Price Controls and Quotas

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve- Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, risk, and Private Information

Graphs in Economics

Consumer Preferences

Indifference Curve Analysis

Filters

Exam 4: Consumer and Producer Surplus

If the government intervened in the market by lowering the price of a good below the equilibrium price,which scenario would NOT occur?

An increase in the consumer surplus in the market for milkshakes may result from a(n)_____ in the _____ of milkshakes.

Use the following to answer questions : Figure: The Market for Hamburgers -(Figure: The Market for Hamburgers)The figure The Market for Hamburgers shows the weekly market for hamburgers in Moncton.If the price of a burger is $2,consumer surplus will equal:

Suppose purchases do not occur because the value of the good to the potential seller exceeds the value to a potential consumer.This situation will occur in:

Suppose the market demand for TV remotes is given by the equation Qd = 100 - 2P,where P is the price and Qd is the number of TV remotes.If the market price of TV remotes is $40,then the quantity demanded equals _____ and the value of consumer surplus is _____.

Assume that the supply curve for corn is upward sloping.In the market for corn,a primary input in the production of ethanol,total surplus _____ when the price of ethanol increases.

We can measure the total consumer surplus for good X as the:

When there is a positive amount of total surplus in a market,it means that the cost of producing the good is zero.

One way to measure the gain to consumers from a drug that has the potential to reduce obesity is to measure what people are willing to pay for the good and subtract the amount they have to pay.

Coffee and tea are substitutes in consumption.If there is an increase in the price of coffee,assuming a positively sloped supply curve and a negatively sloped demand curve,total surplus in the tea market:

Well-defined property rights:

Use the following to answer questions : Figure: Producer Surplus -(Figure: Producer Surplus)Look at the figure Producer Surplus.When the price falls from $45 to $35,producer surplus _____ for a total producer surplus of _____.

Prices above equilibrium on agricultural products like milk exist to maximize the consumer surplus.

Suppose the market demand curve for TV remotes is given by the equation Qd = 100 - 2P,where P is the price and Qd is the number of TV remotes demanded.If the market price of TV remotes is $10,then the quantity demanded equals _____ and the value of consumer surplus is _____.

First Principles

Economic Models

Supply and Demand

Price Controls and Quotas

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve- Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, risk, and Private Information

Graphs in Economics

Consumer Preferences

Indifference Curve Analysis

Filters

An increase in the consumer surplus in the market for milkshakes may result from a(n)_ in the _ of milkshakes.

Suppose the market demand for TV remotes is given by the equation Q_d = 100 - 2P,where P is the price and Q_d is the number of TV remotes.If the market price of TV remotes is $40,then the quantity demanded equals _ and the value of consumer surplus is _.

Use the following to answer questions : Figure: Producer Surplus -(Figure: Producer Surplus)Look at the figure Producer Surplus.When the price falls from $45 to $35,producer surplus _ for a total producer surplus of _.

Suppose the market demand curve for TV remotes is given by the equation Q_d = 100 - 2P,where P is the price and Q_d is the number of TV remotes demanded.If the market price of TV remotes is $10,then the quantity demanded equals _ and the value of consumer surplus is _.