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

Table 7-13 The numbers reveal the opportunity costs of providing 10 piano lessons of equal quality. -Refer to Table 7-13. You wish to purchase 10 piano lessons for yourself and for your brother, so you take bids from each of the sellers. You will take lessons at the same time, so one teacher cannot provide lessons to both of you. You must pay the same price for both sets of lessons, and you will not accept a bid below a seller's cost because you are concerned that the seller will not provide all 10 lessons. What bid will you accept?

Figure 7-15 -Refer to Figure 7-15. When the price rises from P1 to P2, what area represents the increase in producer surplus?

Wendy is willing to pay $50 for a concert ticket and Bruce would like to receive $25. If the market price is $40 for this transaction, then the total surplus would be $15.

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 tickets sell for $40 each, then what is the total consumer surplus in the market? A) $30. A) $90. B) $70. D) $110.

Each seller of a product is willing to sell as long as the price he or she can receive is greater than the opportunity cost of producing the product.

If the government allowed a free market in organs for transplant there would be

Table 7-11 The following table represents the costs of five possible sellers. -Refer to Table 7-11. If the market price is $1,200, the producer surplus in the market is

Figure 7-20 -Refer to Figure 7-20. Total surplus can be measured as the area

If a market is allowed to adjust freely to its equilibrium price and quantity, then an increase in demand will

Table 7-14 The only four producers in a market have the following costs: -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 good will sell for

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. The market quantity of oranges demanded per day is exactly 7 if the price of an orange, P, satisfies

Figure 7-27 -Refer to Figure 7-27. Sellers whose costs are less than the equilibrium price are represented by which line segment?

Economists say that a market where goods are not consumed by those valuing the goods most highly is

Table 7-1 -Refer to Table 7-1. If the price of the product is $110, then who would be willing to purchase the product?

Many economists believe that restrictions against ticket scalping result in each of the following except

Figure 7-22 -Refer to Figure 7-22. At the equilibrium price, producer surplus is

Figure 7-18 -Refer to Figure 7-18. Total surplus amounts to $500 if consumer surplus amounts to

Figure 7-16 -Refer to Figure 7-16. Sellers will be unwilling to sell more than

If a consumer places a value of $15 on a particular good and if the price of the good is $17, then the

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