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

David tunes pianos in his spare time for extra income. Buyers of his service are willing to pay $135 per tuning. One particular week, David is willing to tune the first piano for $115, the second piano for $125, the third piano for $140, and the fourth piano for $175. Assume David is rational in deciding how many pianos to tune. His producer surplus is

Figure 7-28 -Refer to Figure 7-28. At the quantity Q2, the marginal value to buyers

Which of the following statements is not correct?

Table 7-14 The only four producers in a market have the following costs: -Refer to Table 7-14. If Abbey, Bev, and Carl sell the good, and the resulting producer surplus is $55 altogether, then the price must have been

Table 7-17 -Refer to Table 7-17. The equilibrium price is

The particular price that results in quantity supplied being equal to quantity demanded is the best price because it

Figure 7-27 -Refer to Figure 7-27. If the government mandated a price increase from P1 to a higher price, then

Figure 7-31 -Refer to Figure 7-31. If the market equilibrium price rises from $25 to $35, how much is the increase in producer surplus to the producers supplying units at the initial $25 price?

Total surplus in a market can be measured as the area below the supply curve plus the area above the demand curve, up to the point of equilibrium.

Dallas buys strawberries, and he would be willing to pay more than he now pays. Suppose that Dallas has a change in his tastes such that he values strawberries more than before. If the market price is the same as before, then

Chuck would be willing to pay $20 to attend a dog show, but he buys a ticket for $15. Chuck values the dog show at

The cost of production plus producer surplus is the price a seller is paid.

Total surplus measures the

When a buyer's willingness to pay for a good is equal to the price of the good, the

If the United States legally allowed for a market in transplant organs, it is estimated that one kidney would sell for at least $100,000.

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

Figure 7-15 -Refer to Figure 7-15. When the price is P1, producer surplus is

Figure 7-11 -Refer to Figure 7-11. If the supply curve is S and the demand curve shifts from D to D', what is the increase in producer surplus to existing producers?

Figure 7-26 -Refer to Figure 7-26. If the government imposes a price floor of $90 in this market, then consumer surplus will be

Which of the following is not equal to total surplus?