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. Which of the following statements is correct?

Figure 7-21 -Refer to Figure 7-21. When the price is P1, area B represents

Figure 7-13 -Refer to Figure 7-13. If the equilibrium price rises from $60 to $120, what is the producer surplus to new producer s in the market?

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?

Figure 7-10 -Refer to Figure 7-10. Which area represents the increase in producer surplus when the price rises from P1 to P2 due to new producers entering the market?

Figure 7-6 -Refer to Figure 7-6. If the government imposes a price floor of $110 in this market, then consumer surplus will decrease by

Consumer surplus can be measured as the area between the demand curve and the supply curve.

Total surplus in a market is equal to

The 2005 Boston Globe article discussing ticket scalping points out that the price people will pay for tickets will rise when

Figure 7-23 -Refer to Figure 7-23. If the price were P1, producer surplus would be represented by the area

If the government removes a binding price ceiling in a market, then the producer surplus in that market will increase.

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

Producer surplus measures the

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

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 is $1.40, then the market quantity of apples demanded per day is

Figure 7-31 -Refer to Figure 7-31. If the market equilibrium price is $35, how much is total producer surplus in this market?

If producing a soccer ball costs Jake $5, and he sells it for $40, his producer surplus is $35.

The French expression used by free-market advocates, which literally translates as "allow them to do," is

The current policy on kidney donation effectively sets a price ceiling of zero.

Figure 7-21 -Refer to Figure 7-21. When the price is P1, area A represents