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

Table 7-17 -Refer to Table 7-17. Both the demand curve and the supply curve are straight lines. If the price is $4 but only 6 units are bought and sold, consumer surplus will be

The welfare of sellers is measured by

Table 7-11 The following table represents the costs of five possible sellers. -Refer to Table 7-11. Suppose each of the five sellers can supply at most one unit of the good. The market quantity supplied is exactly 2 if the price is

Bill created a new software program he is willing to sell for $300. He sells his first copy and enjoys a producer surplus of $250. What is the price paid for the software?

According to many economists, government restrictions on ticket scalping do all of the following except

Figure 7-23 -Refer to Figure 7-23. If the price were P3, consumer surplus would be represented by the area

Willingness to pay

Figure 7-16 -Refer to Figure 7-16. Suppose the price of the good is $450. Then, on the first unit of the good that is sold, producer surplus is

Which of the Ten Principles of Economics does welfare economics explain more fully?

Producer surplus is the amount a seller is paid minus the cost of production.

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

The study of how the allocation of resources affects economic well-being is called

Figure 7-5 -Refer to Figure 7-5. If the price of the good is $6, then consumer surplus is

Ticket scalping can increase total surplus in the market for tickets to sporting events.

At the equilibrium price of a good, the good will be sold by those sellers

Which of the following is not correct?

Suppose Larry, Moe, and Curly are bidding in an auction for a mint-condition video of Charlie Chaplin's first movie. Each has in mind a maximum amount that he will bid. This maximum is called

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

Suppose televisions are a normal good and buyers of televisions experience a decrease in income. As a result, consumer surplus in the television market

Total surplus in a market is equal to