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Name: __________________________ Date: _____________
1.
A consumer’s willingness to pay reflects the:
A)
maximum price at which he or she would buy a given good or service.
B)
minimum price at which he or she would buy a given good or service.
C)
cost of producing a given good or service.
D)
equilibrium price of a given good or service.
2.
A consumer’s willingness to pay depends on the:
A)
cost of producing a given good or service.
B)
expected additional benefit of consuming a given good or service.
C)
size of the shortage of a given good or service.
D)
size of the surplus of a given good or service.
Use the following to answer questions 3-8:
3.
(Table: Willingness to Pay for Basketball Sneakers) The table Willingness to Pay for
Basketball Sneakers shows each consumer’s willingness to pay for basketball sneakers.
Assume that each consumer wants to buy at most, one pair of sneakers. If the price of
basketball sneakers is $145, which consumer will purchase sneakers?
A)
Jamichael
B)
Corey
C)
Rudy
D)
Ray
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4.
(Table: Willingness to Pay for Basketball Sneakers) The table Willingness to Pay for
Basketball Sneakers shows each player’s willingness to pay for basketball sneakers.
Assume that each player wants to buy at most, one pair of sneakers. If the price of
basketball sneakers is $125, which players will purchase sneakers?
A)
Jamichael and Javon
B)
Jamichael and Corey
C)
Jamichael, Corey, and Rudy
D)
Jamichael, Corey, Rudy, and Ray
5.
(Table: Willingness to Pay for Basketball Sneakers) The table Willingness to Pay for
Basketball Sneakers shows each player’s willingness to pay for basketball sneakers.
Assume that each player wants to buy at most, one pair of sneakers. If the price of
basketball sneakers is $180, how many pairs will be purchased?
A)
none
B)
one
C)
two
D)
three
6.
(Table: Willingness to Pay for Basketball Sneakers) The table Willingness to Pay for
Basketball Sneakers shows each player’s willingness to pay for basketball sneakers.
Assume that each player wants to buy at most, one pair of sneakers. If the price of
basketball sneakers is $130, how many pairs will be purchased?
A)
none
B)
one
C)
two
D)
three
7.
(Table: Willingness to Pay for Basketball Sneakers) The table Willingness to Pay for
Basketball Sneakers shows each player’s willingness to pay for basketball sneakers.
Assume that each player wants to buy at most, one pair of sneakers. If the price of
basketball sneakers is $99, how many pairs will be purchased?
A)
one
B)
two
C)
three
D)
four
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8.
(Table: Willingness to Pay for Basketball Sneakers) The table Willingness to Pay for
Basketball Sneakers shows each player’s willingness to pay for basketball sneakers.
Assume that each player wants to buy at most, one pair of sneakers. If the price of
basketball sneakers is $60, how many pairs will be purchased?
A)
five
B)
four
C)
three
D)
two
9.
Consumers’ willingness to pay for a good is used to derive the _____ for that good.
A)
producer surplus
B)
cost of production
C)
supply curve
D)
demand curve
10.
The total consumer surplus for good X CANNOT be calculated as the:
A)
sum of the individual consumer surpluses for all buyers of X.
B)
area below the demand curve for X and above the price paid for X.
C)
area bounded by the demand curve for X and the two axes.
D)
sum, for all buyers of X, of the difference between what each buyer is willing to
pay for X and the amount actually paid.
Use the following to answer questions 11-13:
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11.
(Table: Consumer Surplus and Phantom Tickets) The table Consumer Surplus and
Phantom Tickets shows each student’s willingness to pay for a Phantom of the Opera
ticket. Assume that each student wants to buy one ticket. If the price of a ticket to see
Phantom of the Opera is $50, then Robert’s consumer surplus is:
A)
$60.
B)
$50.
C)
$10.
D)
$240.
12.
(Table: Consumer Surplus and Phantom Tickets) The table Consumer Surplus and
Phantom Tickets shows each student’s willingness to pay for a Phantom of the Opera
ticket. Assume that each student wants to buy one ticket. If the box office price of a
ticket to see Phantom of the Opera is $50 and there is no other market for tickets, the
total consumer surplus for the five students is:
A)
$100.
B)
$175.
C)
$230.
D)
$240.
13.
(Table: Consumer Surplus and Phantom Tickets) The table Consumer Surplus and
Phantom Tickets shows each student’s willingness to pay for a Phantom of the Opera
ticket. Assume that each student wants to buy one ticket. If the box office price of a
ticket to see Phantom of the Opera is $130 and there is no other market for tickets, the
total consumer surplus for the five students is:
A)
$150.
B)
$125.
C)
$20.
D)
$0.
Use the following to answer questions 14-20:
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14.
(Table: Consumer Surplus) Use Table: Consumer Surplus. Assume that each student
wants to buy one ticket. If the price of a ticket to see The Nutty Nutcracker is $50, Lois’s
consumer surplus is:
A)
$60.
B)
$50.
C)
$15.
D)
$240.
15.
(Table: Consumer Surplus) Use Table: Consumer Surplus. Assume that each student
wants to buy one ticket. If the price of a ticket to see The Nutty Nutcracker is $50,
Narum’s consumer surplus is:
A)
$60.
B)
$50.
C)
$15.
D)
$240.
16.
(Table: Consumer Surplus) Use Table: Consumer Surplus. Assume that each student
wants to buy one ticket. If the price of a ticket to see The Nutty Nutcracker is $75, Lois’s
consumer surplus is:
A)
$25.
B)
$60.
C)
$75.
D)
$100.
17.
(Table: Consumer Surplus) Use Table: Consumer Surplus. Assume that each student
wants to buy one ticket. If the price of a ticket to see The Nutty Nutcracker is $75,
Miguel’s consumer surplus is:
A)
$60.
B)
$50.
C)
$15.
D)
$240.
18.
(Table: Consumer Surplus) Use Table: Consumer Surplus. Assume that each student
wants to buy one ticket. If the price of a ticket to see The Nutty Nutcracker is $50 and
there is no other market for tickets, total consumer surplus for the five students is:
A)
$105.
B)
$130.
C)
$270.
D)
$320.
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19.
(Table: Consumer Surplus) Use Table: Consumer Surplus. Assume that each student
wants to buy one ticket. If the price of a ticket to see The Nutty Nutcracker is $75 and
there is no other market for tickets, the total consumer surplus for the five students is:
A)
$190.
B)
$125.
C)
$40.
D)
$0.
20.
(Table: Consumer Surplus) Use Table: Consumer Surplus. Assume that each student
wants to buy one ticket. If the tickets to The Nutty Nutcracker are free and there is no
other market for tickets, the total consumer surplus for the five students is:
A)
$0.
B)
$100.
C)
$150.
D)
$320.
21.
We can measure total consumer surplus for good X as the:
A)
sum of the individual consumer surpluses for all buyers of X.
B)
area above the demand curve for X and below the price paid for X.
C)
area bounded by the demand curve for X and the two axes.
D)
area above the supply curve for X.
22.
Consumer surplus for an individual buyer is equal to the:
A)
consumer’s willingness to pay for the good minus the marginal cost of producing
the good.
B)
price of the good minus the marginal cost of producing the good.
C)
consumer’s willingness to pay for the good minus the price paid for the good.
D)
marginal cost of the good minus the consumer’s willingness to pay for the good.
23.
Consumer surplus for a given good can be found by computing the area _____ the
_____ curve and _____ the price paid for the good.
A)
above; supply; below
B)
below; supply; above
C)
below; demand; above
D)
below; demand; below
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24.
(Table: Music Downloads) Two consumers, Eli and Madison, like to download songs to
their iPhones, and the table Music Downloads represents their willingness to pay for
each downloaded song. If an individual song can be downloaded for $1, what is the total
consumer surplus received by these consumers?
A)
$19.25
B)
$18
C)
$10
D)
$11
25.
(Table: Economics Textbooks) The table Economics Textbooks shows how much
money four consumers would be willing to pay for a new economics textbook. If the
price of the textbook is $100, what is the total consumer surplus received by these
consumers?
A)
$125
B)
$500
C)
$100
D)
$75
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26.
(Figure: Monthly Demand for Ice Cream Cones) The graph Monthly Demand for Ice
Cream Cones shows one individual’s linear monthly demand for ice cream cones. At $5
per cone, this individual will consume 10 cones in a month. How much consumer
surplus does this consumer receive?
A)
$100
B)
$50
C)
$150
D)
$500
27.
Ashley bought a new pair of jeans. When she walked out of the store, she thought, “I got
such a great deal; I would have paid $40 more for these jeans!” This BEST represents
the concept of:
A)
consumer surplus.
B)
producer surplus.
C)
total surplus.
D)
equilibrium.
28.
Mark and Rasheed are at the bookstore buying new calculators for the semester. Mark is
willing to pay $75 and Rasheed is willing to pay $100 for a graphing calculator. The
price for a calculator at the bookstore is $65. How much is their total consumer surplus?
A)
$10
B)
$35
C)
$45
D)
$60
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29.
Mark and Rasheed are at the bookstore buying new calculators for the semester. Mark is
willing to pay $75 and Rasheed is willing to pay $100 for a graphing calculator. The
price for a calculator at the bookstore is $65. How much is Mark’s individual consumer
surplus?
A)
$10
B)
$25
C)
$35
D)
$75
30.
Vonda and Aleiyah are shopping together at the mall for new jeans. Vonda is willing to
pay $90 and Aleiyah is willing to pay $50 for a pair of jeans. If the price of jeans is $59,
how much total consumer surplus is achieved in this market?
A)
$0
B)
$9
C)
$31
D)
$40
31.
Consumer surplus is represented by the area _____ the demand curve and _____ the
price that the consumer pays.
A)
above; below
B)
above; above
C)
below; above
D)
below; below
32.
Jeanette is willing to pay $100 for the first pair of shoes, $80 for the second pair, $50 for
the third, and $30 for the fourth. If shoes cost $50 and assuming that she buys shoes
when she’s indifferent about buying a given pair, Jeanette will buy _____ pairs of shoes
and her total consumer surplus equals _____.
A)
four; $110
B)
three; $230
C)
three; $80
D)
four; $80
33.
Adie wants to take some online classes this semester. She is willing to pay $1,000 for
the first class, $800 for the second, $700 for the third, and $500 for the fourth. If online
classes cost $750, Adie will take _____ online classes, and her consumer surplus will
equal _____.
A)
three; $350
B)
four; $600
C)
two; $400
D)
two; $300
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34.
(Figure: Wireless Mouse Market) Use the graph to calculate consumer surplus when the
market is at equilibrium.
A)
$4,000
B)
$5,000
C)
$2,000
D)
$3,000
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35.
(Figure: Market Demand) Look at the figure Market Demand. The amount by which the
total benefits to consumers exceed their total expenditure is called _____, and if the
price is B, is depicted by the area _____.
A)
producer surplus; BCD
B)
consumer surplus; 0CDE
C)
consumer surplus; BCD
D)
net benefit; 0BDE
36.
Along a given downward-sloping demand curve, an increase in the price of a good will
_____ consumer surplus.
A)
increase
B)
decrease
C)
not change
D)
The answer cannot be determined without information about the supply curve.
37.
Which situation would most likely cause a DECREASE in consumer surplus in the toy
market?
A)
The cost of shipping increases because of higher oil prices.
B)
Consumer income increases.
C)
There is an unexpected baby boom.
D)
A new assembly line design increases worker productivity.
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38.
Vonda and Aleiyah are shopping together at the mall for new jeans. Vonda is willing to
pay $90 and Aleiyah is willing to pay $50 for a pair of jeans. What is the gain in total
consumer surplus when the price decreases from $59 to $40?
A)
$10
B)
$29
C)
$31
D)
$60
39.
Some smaller retailers often go out of business when Walmart opens a new store. The
MOST likely reason for this development is that:
A)
Walmart practices unfair pricing methods that reduce consumer surplus over time.
B)
consumers in those areas receive no consumer surplus from Walmart.
C)
consumers in those areas receive a larger consumer surplus from shopping at
Walmart than from the smaller stores.
D)
smaller stores increase prices to compete.
40.
An increase in the consumer surplus in the market for milkshakes may result from a(n)
_____ in the _____ of milkshakes.
A)
increase; price
B)
increase; supply
C)
decrease; demand
D)
decrease; supply
41.
Along a given downward-sloping demand curve, an increase in the price of a good will:
A)
increase consumer surplus.
B)
decrease consumer surplus.
C)
have no effect on consumer surplus.
D)
decrease producer surplus.
42.
Suppose the United States removes sugar quotas and the market price of sugar drops. If
the demand curve for candy bars is downward-sloping, in the candy bar market we
would expect the:
A)
consumer surplus to increase.
B)
consumer surplus to decrease.
C)
consumer surplus to be unchanged.
D)
deadweight loss to increase.
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43.
If the demand curve for ice cream is downward-sloping and the supply of it decreases,
there is _____ in consumer surplus.
A)
an increase
B)
a decrease
C)
no change
D)
It’s impossible to tell what will happen to consumer surplus.
44.
When there is a bountiful harvest of grapefruit, assuming that the demand curve for
grapefruit is downward-sloping, total consumer surplus in the grapefruit market:
A)
will increase.
B)
will decrease.
C)
will remain the same.
D)
may change, but we can’t tell how.
45.
Along a given downward-sloping demand curve, a decrease in the price of a good will
_____ consumer surplus.
A)
increase
B)
decrease
C)
have no effect on
D)
It’s impossible to tell what will happen to consumer surplus.
46.
Which scenario is most likely to INCREASE consumer surplus in the market for cotton
T-shirts?
A)
Weather provides for a bountiful cotton harvest.
B)
Consumer incomes fall and cotton T-shirts are normal goods.
C)
The price of polyester T-shirts falls.
D)
The price of industrial sewing machines used to produce garments increases.
47.
The number of seats in a football stadium is fixed at 70,000. The team raises the price of
a ticket from $30, at which 70,000 are sold, to $40, and it sells 60,000 tickets. The price
change caused a change in the consumer surplus of:
A)
–$10.
B)
–$650,000.
C)
–$100,000.
D)
–$10,000.
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Use the following to answer questions 48-50:
48.
(Figure: The Market for Hamburgers) The figure The Market for Hamburgers shows the
weekly market for hamburgers in Irvine, Kentucky. If the price of a hamburger is $1 and
200 hamburgers are supplied, producer surplus will equal:
A)
$60.
B)
$65.
C)
$50.
D)
$360.
49.
(Figure: The Market for Hamburgers) The figure The Market for Hamburgers shows the
weekly market for hamburgers in Irvine, Kentucky. If 400 hamburgers are sold,
producer surplus will equal:
A)
$650.
B)
$400.
C)
$510.
D)
$200.
50.
(Figure: The Market for Hamburgers) The figure The Market for Hamburgers shows the
weekly market for hamburgers in Irvine, Kentucky. If the price of burgers falls from
$1.50 to $1.00, there is a loss in producer surplus. How much of the loss accrues as a
direct result of the hamburgers that are no longer supplied in the market?
A)
$50
B)
$45
C)
$75
D)
$90
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Use the following to answer questions 51-53:
51.
(Figure: Producer Surplus) Look at the figure Producer Surplus. When the price falls
from $45 to $35, producer surplus _____ for a total producer surplus of _____.
A)
increases by $10; $140
B)
decreases by $40; $60
C)
increases by $35; $180
D)
decreases by $10; $140
52.
(Figure: Producer Surplus) Look at the figure Producer Surplus. When the price rises
from $25 to $35, producer surplus _____ for a total producer surplus of _____.
A)
increases by $10; $30
B)
decreases by $10; $30
C)
increases by $30; $60
D)
decreases by $35; $100
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53.
(Figure: Producer Surplus) Look at the figure Producer Surplus. Total producer surplus
is _____ when the price is $45.
A)
$40
B)
$60
C)
$100
D)
$85
Use the following to answer questions 54-57:
54.
(Figure: Producer Surplus II) Look at the figure Producer Surplus II. At a price of P1,
producer surplus equals the area:
A)
LMK.
B)
P1K0.
C)
P2M0.
D)
P2P1KM.
55.
(Figure: Producer Surplus II) Look at the figure Producer Surplus II. At a price of P2,
producer surplus equals the area:
A)
LMK.
B)
P1K0.
C)
P2M0.
D)
P2P1KM.
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56.
(Figure: Producer Surplus II) Look at the figure Producer Surplus II. If the price falls
from P2 to P1, producer surplus decreases by the area:
A)
LMK.
B)
P1K0.
C)
P2M0.
D)
P2P1KM.
57.
(Figure: Producer Surplus II) Look at the figure Producer Surplus II. If the price rises
from P1 to P2, producer surplus increases by the area:
A)
LMK.
B)
P1K0.
C)
P2M0.
D)
P2P1KM.
Use the following to answer questions 58-61:
58.
(Figure: Producer Surplus III) Look at the figure Producer Surplus III. If the price of the
good is $2, producer surplus will equal:
A)
$20.
B)
$40.
C)
$60.
D)
$80.
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59.
(Figure: Producer Surplus III) Look at the figure Producer Surplus III. If the price of the
good is $4, producer surplus will equal:
A)
$20.
B)
$40.
C)
$60.
D)
$80.
60.
(Figure: Producer Surplus III) Look at the figure Producer Surplus III. If the price of the
good increases from $3 to $4, producer surplus will increase by:
A)
$5.
B)
$15.
C)
$25.
D)
$35.
61.
(Figure: Producer Surplus III) Look at the figure Producer Surplus III. If the price of the
good decreases from $2 to $1, producer surplus will decrease by:
A)
$5.
B)
$15.
C)
$25.
D)
$35.
62.
Anna is willing to sell her 20-year-old boat, but not for less than $2,300. For Anna, the
value of this boat is _____ $2,300.
A)
more than
B)
less than
C)
equal to
D)
There is not enough information to answer the question.
Use the following to answer questions 63-66:
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63.
(Table: Producer Surplus and Phantom Tickets) The table Producer Surplus and
Phantom Tickets shows the minimum price at which each of the students is willing to
sell a ticket to Phantom of the Opera. Assume that each student has only one ticket to
sell. If the price for Phantom tickets is $55, which student has the highest individual
producer surplus?
A)
Tim
B)
Laura
C)
Rick
D)
Ralph
64.
(Table: Producer Surplus and Phantom Tickets) The table Producer Surplus and
Phantom Tickets shows the minimum price at which each of the students is willing to
sell a ticket to Phantom of the Opera. Assume that each student has only one ticket to
sell. If the price for Phantom tickets is $140 and there is no other market for tickets,
total producer surplus for these five students is:
A)
$139.
B)
$110.
C)
$40.
D)
$379.
65.
(Table: Producer Surplus and Phantom Tickets) The table Producer Surplus and
Phantom Tickets shows the minimum price at which each of the students is willing to
sell a ticket to Phantom of the Opera. Assume that each student has only one ticket to
sell. Given the information in the table, if the price for Phantom tickets is $55, total
producer surplus for the five students is:
A)
$54.
B)
$79.
C)
$84.
D)
$64.
66.
(Table: Producer Surplus and Phantom Tickets) The table Producer Surplus and
Phantom Tickets shows the minimum price at which each of the students is willing to
sell a ticket to Phantom of the Opera. Assume that each student has only one ticket to
sell. Given the information in the table, if these students can sell their Phantom tickets
for only $5, then:
A)
Tim will be the only student not to sell his ticket.
B)
Whitney, Ralph, and Rick will sell their tickets.
C)
the total producer surplus for the five students will be $4.
D)
the total producer surplus for the five students will be $330.
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67.
The total producer surplus in the Wisconsin milk market is the:
A)
sum of the individual producer surpluses in this market.
B)
sum of all prices paid multiplied by the number of gallons of milk sold.
C)
total revenue of the milk producers in Wisconsin.
D)
total cost of selling milk in Wisconsin.
68.
The total producer surplus for a good CANNOT be calculated as the:
A)
sum of the individual producer surpluses for all sellers of the good.
B)
area below the supply curve for the good up to the quantity of the good sold.
C)
area above the supply curve and below the price that sellers receive for the good
being sold.
D)
sum, for all sellers of the good, of the difference between what each seller receives
and the minimum amount he or she is willing to accept for selling the good.
Use the following to answer questions 69-75:
69.
(Table: Producer Surplus) Use Table: Producer Surplus. If the price of a ticket to see
The Nutty Nutcracker is $50, then Francisco’s producer surplus is:
A)
$0.
B)
$40.
C)
$90.
D)
$240.