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111. Motor oil and gasoline are complements. If the price of motor oil increases, consumer surplus in the gasoline market
a.
decreases.
b.
is unchanged.
c.
increases.
d.
may increase, decrease, or remain unchanged.
112. 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
a.
Dallas's consumer surplus would be unaffected.
b.
Dallas's consumer surplus would increase.
c.
Dallas's consumer surplus would decrease.
d.
Dallas would be wise to buy fewer strawberries than before.
113. Refer to Figure 7-1. If the price of the good is $250, then consumer surplus amounts to
a.
$50.
b.
$100.
c.
$150.
d.
$200.
114. Refer to Figure 7-1. If the price of the good is $150, then consumer surplus amounts to
a.
$150.
b.
$200.
c.
$250.
d.
$300.
115. Refer to Figure 7-1. If the price of the good is $50, then consumer surplus amounts to
a.
$400.
b.
$500.
c.
$600.
d.
$750.
116. Refer to Figure 7-1. If the price of the good is $200, then
a.
consumer surplus is $150.
b.
consumer surplus is $650.
c.
producer surplus is $650.
d.
producer surplus is $750.
117. Refer to Figure 7-1. The value of the good to consumers minus the cost of the good to consumers amounts to $325
if the price of the good is
a.
$200.
b.
$150.
c.
$125.
d.
$100.
118. Refer to Figure 7-2. If the price of the good is $100, then consumer surplus amounts to
a.
$50.
b.
$75.
c.
$100.
d.
$125.
119. Refer to Figure 7-2. If the price of the good is $80, then consumer surplus amounts to
a.
$110.
b.
$135.
c.
$160.
d.
$185.
120. Refer to Figure 7-3. When the price is P1, consumer surplus is
a.
A.
b.
A+B.
c.
A+B+C.
d.
A+B+D.
121. Refer to Figure 7-3. When the price is P2, consumer surplus is
a.
A.
b.
B.
c.
A+B.
d.
A+B+C.
122. Refer to Figure 7-3. When the price rises from P1 to P2, consumer surplus
a.
increases by an amount equal to A.
b.
decreases by an amount equal to B+C.
c.
increases by an amount equal to B+C.
d.
decreases by an amount equal to C.
123. Refer to Figure 7-3. Area C represents the
a.
decrease in consumer surplus that results from a downward-sloping demand curve.
b.
consumer surplus to new consumers who enter the market when the price falls from P2 to P1.
c.
increase in producer surplus when quantity sold increases from Q2 to Q1.
d.
decrease in consumer surplus to each consumer in the market when the price increases from P1 to P2.
124. Refer to Figure 7-3. When the price rises from P1 to P2, which of the following statements is not true?
a.
The buyers who still buy the good are worse off because they now pay more.
b.
Some buyers leave the market because they are not willing to buy the good at the higher price.
c.
Buyers place a higher value on the good after the price increase.
d.
Consumer surplus in the market falls.
125. Refer to Figure 7-4. Which area represents consumer surplus at a price of P1?
a.
BDF
b.
AFG
c.
ABDG
d.
ABC
126. Refer to Figure 7-4. Which area represents consumer surplus at a price of P2?
a.
BDF
b.
AFG
c.
ABDG
d.
ABC
127. Refer to Figure 7-4. Which area represents the increase in consumer surplus when the price falls from P1 to P2?
a.
BDF
b.
AFG
c.
ABC
d.
ABDG
128. Refer to Figure 7-4. When the price falls from P1 to P2, which area represents the increase in consumer surplus to
existing buyers?
a.
BDF
b.
AFG
c.
BCGD
d.
ABC
129. Refer to Figure 7-4. When the price falls from P1 to P2, which area represents the increase in consumer surplus to
new buyers entering the market?
a.
BDF
b.
AFG
c.
BCGD
d.
ABC
Figure 7-5
130. Refer to Figure 7-5. If the price of the good is $6, then consumer surplus is
a.
$16.
b.
$24.
c.
$30.
d.
$36.
131. Refer to Figure 7-5. If the price of the good is $12, then consumer surplus is
a.
$9.
b.
$11.
c.
$13.
d.
$16.
Figure 7-6
132. Refer to Figure 7-6. At the equilibrium price, consumer surplus is
a.
$1,600.
b.
$800.
c.
$1,400.
d.
$700.
133. Refer to Figure 7-6. If the government imposes a price floor of $110 in this market, then consumer surplus will
decrease by
a.
$200.
b.
$400.
c.
$600.
d.
$800.
Figure 7-7
134. Refer to Figure 7-7. What is the consumer surplus if the price is $100?
a.
$2,500
b.
$5,000
c.
$10,000
d.
$20,000
135. Refer to Figure 7-7. What happens to the consumer surplus if the price rises from $100 to $150?
a.
The new consumer surplus is half of the original consumer surplus.
b.
The new consumer surplus is 25 percent of the original consumer surplus.
c.
The new consumer surplus is double the original consumer surplus.
d.
The new consumer surplus is triple the original consumer surplus.
Figure 7-8
136. Refer to Figure 7-8. At the equilibrium price, consumer surplus is
a.
$1,050.
b.
$1,225.
c.
$1,575.
d.
$2,450.
137. Refer to Figure 7-8. If the government imposes a price floor of $100 in this market, then consumer surplus will
decrease by
a.
$150.
b.
$325.
c.
$650.
d.
$675.
138. Refer to Figure 7-8. If the government imposes a price ceiling of $80 in this market, then, assuming those with the
highest willingness to pay purchase the good, consumer surplus will be
a.
$900.
b.
$1,200.
c.
$1,500.
d.
$1,600.
139. When the supply of a good decreases and the demand for the good remains unchanged, consumer surplus
a.
decreases.
b.
is unchanged.
c.
increases.
d.
may increase, decrease, or remain unchanged.
140. Which of the following is true when the price of a good or service rises?
a.
Buyers who were already buying the good or service are better off.
b.
Some buyers exit the market.
c.
The total consumer surplus in the market increases.
d.
The total value of purchases before and after the price change is the same.
141. Oil is used to produce gasoline. If the price of oil increases, consumer surplus in the gasoline market
a.
decreases.
b.
is unchanged.
c.
increases.
d.
may increase, decrease, or remain unchanged.
142. What happens to consumer surplus in the iPod market if iPods are normal goods and buyers of iPods experience an
increase in income?
a.
Consumer surplus decreases.
b.
Consumer surplus remains unchanged.
c.
Consumer surplus increases.
d.
Consumer surplus may increase, decrease, or remain unchanged.
143. As a result of a decrease in price,
a.
new buyers enter the market, increasing consumer surplus.
b.
new buyers enter the market, decreasing consumer surplus.
c.
existing buyers exit the market, increasing consumer surplus.
d.
existing buyers exit the market, decreasing consumer surplus.
144. Economists normally assume people’s preferences should be
a.
respected.
b.
adjusted.
c.
overruled.
d.
ignored.
145. Consumer surplus is a good measure of economic welfare if policymakers want to
a.
maximize total benefit.
b.
minimize deadweight loss.
c.
respect the preferences of sellers.
d.
respect the preferences of buyers.
146. When policymakers are considering a particular action, they can use consumer surplus as a(n)
a.
objective measure of the benefits to buyers as determined by policymakers.
b.
measure of the benefits to buyers as the buyers perceive them.
c.
potentially flawed measure of the benefits to buyers if the buyers are not rational.
d.
Both b) and c) are correct.
