Question 1

-Refer to Figure 6.3.If the price of one hour of tutoring falls from $30 to $20,then producer surplus will:

Accepted Answer

B

Question 2

-Refer to Figure 6.1.If the price of a donut is $ .75,consumer surplus is:

Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay and what they actually pay. If the price of a donut is $0.75 and the maximum willingness to pay is $2.25, the consumer surplus is $1.50 ($2.25 - $0.75).

Question 3

Jody's bakery makes cakes and would be willing to sell each cake for $12.50.If Jody's bakery sells 10 cakes for $13 each,the total producer surplus for Jody's bakery would be equal to:

Accepted Answer

The producer surplus is the difference between the price a producer is willing to sell a good for and the price they actually sell it for. In this case, Jody's bakery is willing to sell each cake for $12.50, but they are actually selling them for $13 each. Therefore, the producer surplus for each cake is $13 - $12.50 = $0.50. Since Jody's bakery is selling 10 cakes, the total producer surplus is $0.50 * 10 = $5.00.

Question 4

Consumer surplus can be defined as the:

Accepted Answer

Consumer surplus is the difference between the value a consumer derives from a good and the price the consumer paid for that good. Therefore, choice A is the correct definition of consumer surplus. Choice B defines willingness to pay, not consumer surplus. Choice C defines net benefit, not consumer surplus. Choice D defines the concept of marginal utility, not consumer surplus.

Question 5

Assume that Crystal's demand for hand bags remains constant,but the price of hand bags increases.Crystal's consumer surplus:

Accepted Answer

If the price of hand bags increases, Crystal's consumer surplus will decrease because she will have to pay a higher price for the same quantity of hand bags.

Question 6

Suppose you receive a consumer surplus of $50.The $50 represents:

Accepted Answer

Consumer surplus is the difference between the price that a consumer is willing to pay for a good and the actual price they pay. Therefore, receiving a consumer surplus of $50 means that the consumer paid $50 less than what they were willing to pay for the good.

Question 7

Tom would be willing to pay a maximum of $2,500 to attend the Super Bowl this year,and he can buy a ticket for $2,050.His consumer surplus is:

Accepted Answer

The answer of Tom would be willing to pay a...

Question 8

-Refer to Figure 6.1.If the price of a donut is $1.25,consumer surplus is:

Accepted Answer

The answer of 
-Refer to Figure 6.1.If the price of...

Question 9

You would be willing to pay a maximum of $1000 for an airplane ticket to London,UK during the summer,and you can buy an airplane ticket for $890.Your consumer surplus is:

Accepted Answer

The answer of You would be willing to pay a...

Question 10

-Refer to Figure 6.3.If the price of one hour of tutoring is $30,then producer surplus is:

Accepted Answer

The answer of 
-Refer to Figure 6.3.If the price of...

Question 11

The difference between the maximum amount a person is willing to pay for a good and its current market price is known as:

Accepted Answer

The difference between the maximum amount a person is willing to pay for a good and its current market price is known as consumer surplus. It represents the benefit that consumers receive from purchasing a good or service at a price lower than what they are willing to pay. This concept is often used in economics to measure the welfare of consumers in a market economy.

Question 12

-Refer to Figure 6.2.If the price of a DVD rental is $6.00,consumer surplus will be $ ________ each week.

Accepted Answer

Consumer surplus is the difference between the price consumers are willing to pay for a good and the price they actually pay. In this case, consumers are willing to pay up to $8.00 for a DVD rental, but they only have to pay $6.00. Therefore, consumer surplus is $2.00.

Question 13

-Refer to Figure 6.2.If the price of a DVD rental is $2.00,consumer surplus will be $ ________ each week.

Accepted Answer

The answer of 
-Refer to Figure 6.2.If the price of...

Question 14

-Refer to Figure 6.3.If the price of one hour of tutoring is $20,then producer surplus is:

Accepted Answer

The answer of 
-Refer to Figure 6.3.If the price of...

Question 15

Mary has an old house built in 1950 that she would be willing to sell for $100,000.If someone offers to buy her house for $110,000,Mary's producer surplus would be equal to:

Accepted Answer

Mary's producer surplus is the difference between the price she is willing to sell the house for ($100,000) and the actual price she receives ($110,000). Therefore, her producer surplus would be $10,000.

Question 16

Producer surplus is equal to:

Accepted Answer

Producer surplus is the difference between the price at which a producer is willing to sell a good and the actual price they receive. It is represented by the area above the supply curve and below the market price. Option B correctly describes the area above the supply curve and below the good's price, which represents the producer surplus. Option A describes the total revenue of producers, and options C and D are incorrect.

Question 17

Consumer surplus is equal to:

Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay for a good or service and what they actually pay. This is represented by the area under the demand curve above the equilibrium price, up to the quantity purchased. Therefore, the correct answer is B, the area under the demand curve above the good's price.

Question 18

Laura makes hand-made jewelry and she would be willing to sell pairs of earrings for $50.If Laura sells each pair of earrings for $65,her producer surplus per pair of earrings sold would be equal to:

Accepted Answer

Producer surplus is the difference between the selling price of a product and the cost of producing it. In this case, Laura's cost of producing a pair of earrings is $50 and she is willing to sell each pair for $65. Therefore, her producer surplus per pair of earrings sold would be $15 ($65 - $50). Choice C is the correct answer.

Question 19

-Refer to Figure 6.1.If the price of a donut is $ .25,consumer surplus is:

Accepted Answer