Question 1

Table 7-19
The following table shows the cost of producing a good for the only four producers in a market.
 
-Refer to Table 7-19. If the market equilibrium price is $28, what is total producer surplus in the market?

Accepted Answer

Total prod...

Question 2

Figure 7-26 
-Refer to Figure 7-26. At the equilibrium price, total surplus is

Accepted Answer

A)   $600.
B)   $1,200.
C)   $1,500.
D)   $1,800.

Question 3

If a consumer is willing and able to pay $20 for a particular good and if he pays $16 for the good, then for that consumer, consumer surplus amounts to

Accepted Answer

A)   $4.
B)   $16.
C)   $20.
D)   $36.

Question 4

Scenario 7-2
Suppose market demand and market supply are given by the equations: 
-Refer to Scenario 7-2. Suppose a reduction in input prices shifts the market supply curve to  By how much does total producer surplus increase as a result of this supply shift?

Accepted Answer

Total producer surplus prior t...

Question 5

Figure 7-24 
-Refer to Figure 7-24. At equilibrium, producer surplus is

Accepted Answer

A)   $36.
B)   $72.
C)   $54.
D)   $18.

Question 6

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 the market price for the good is $20, who will purchase the good?

Accepted Answer

A)   Danita only
B)   Carolyn and Danita only
C)   Ashleigh, Barb, and Carolyn only
D)   All four buyers would purchase the good.

Question 7

If the government imposes a binding price floor in a market, then the consumer surplus in that market will decrease.

Accepted Answer

A) True 
 B)False

Question 8

If an allocation of resources is efficient, then

Accepted Answer

A)   consumer surplus is maximized.
B)   producer surplus is maximized.
C)   all potential gains from trade among buyers are sellers are being realized.
D)   the allocation achieves equality as well.

Question 9

Figure 7-17 
-Refer to Figure 7-17. If the supply curve is S and the demand curve is D, what is total producer surplus at the equilibrium price?

Accepted Answer

A)   $202.50
B)   $405
C)   $810
D)   $1,215

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

Table 7-19 The following table shows the cost of producing a good for the only four producers in a market. -Refer to Table 7-19. If the market equilibrium price is $28, what is total producer surplus in the market?

Correct Answer
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Total prod...
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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 the market price for the good is $20, who will purchase the good?

Correct Answer
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Scenario 7-2 Suppose market demand and market supply are given by the equations: -Refer to Scenario 7-2. Suppose a reduction in input prices shifts the market supply curve to By how much does total producer surplus increase as a result of this supply shift?

Correct Answer
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Total producer surplus prior t...
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Figure 7-24 -Refer to Figure 7-24. At equilibrium, producer surplus is

Correct Answer
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Figure 7-26 -Refer to Figure 7-26. At the equilibrium price, total surplus is

Correct Answer
verified

If a consumer is willing and able to pay $20 for a particular good and if he pays $16 for the good, then for that consumer, consumer surplus amounts to

Correct Answer
verified

If an allocation of resources is efficient, then

Correct Answer
verified

If the government imposes a binding price floor in a market, then the consumer surplus in that market will decrease.

Correct Answer
verified

Figure 7-17 -Refer to Figure 7-17. If the supply curve is S and the demand curve is D, what is total producer surplus at the equilibrium price?

Correct Answer
verified

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

Table 7-19 The following table shows the cost of producing a good for the only four producers in a market. -Refer to Table 7-19. If the market equilibrium price is $28, what is total producer surplus in the market?

Correct AnswerverifiedTotal prod...View AnswerShow Answer

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 the market price for the good is $20, who will purchase the good?

Correct AnswerverifiedShow Answer

Scenario 7-2 Suppose market demand and market supply are given by the equations: -Refer to Scenario 7-2. Suppose a reduction in input prices shifts the market supply curve to By how much does total producer surplus increase as a result of this supply shift?

Correct AnswerverifiedTotal producer surplus prior t...View AnswerShow Answer

Figure 7-24 -Refer to Figure 7-24. At equilibrium, producer surplus is

Correct AnswerverifiedShow Answer

Figure 7-26 -Refer to Figure 7-26. At the equilibrium price, total surplus is

Correct AnswerverifiedShow Answer

If a consumer is willing and able to pay $20 for a particular good and if he pays $16 for the good, then for that consumer, consumer surplus amounts to

Correct AnswerverifiedShow Answer

If an allocation of resources is efficient, then

Correct AnswerverifiedShow Answer

If the government imposes a binding price floor in a market, then the consumer surplus in that market will decrease.

Correct AnswerverifiedShow Answer

Figure 7-17 -Refer to Figure 7-17. If the supply curve is S and the demand curve is D, what is total producer surplus at the equilibrium price?

Correct AnswerverifiedShow Answer

Correct Answer
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Total prod...
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Total producer surplus prior t...
View Answer

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