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Consumers, Producers, and the Efficiency of Markets 1813
30.
Refer to Table 7-11. If the price is $1,l50, who would be willing to supply the product?
a.
Abby and Bobby
b.
Abby, Bobby, and Dianne
c.
Carlos, Dianne, and Evaline
d.
Dianne and Evaline only
31.
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
a. $1,700.
b. $1,100.
c. $1,650.
d. $1,050.
32.
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 4 if the price is
a. $860.
b. $1,050.
c. $1,650.
d. $1,400.
33.
Refer to Table 7-11. Who is a marginal seller when the price is $1,100?
a.
Dianne
b.
Bobby and Abby
c.
Carlos, Dianne, and Evaline
d.
Carlos, Dianne, Evaline, and Bobby
Consumers, Producers, and the Efficiency of Markets 1815
Table 7-12
The only four producers in a market have the following costs:
Seller
Cost
Evan
$50
Selena
$100
Angie
$150
Kris
$200
34.
Refer to Table 7-12. If the sellers bid against each other for the right to sell the good to a
consumer, then the
good will sell for
a.
$50 or slightly more.
b.
$100 or slightly less.
c.
$150 or slightly less.
d.
$200 or slightly more.
35.
Refer to Table 7-12. If the sellers bid against each other for the right to sell the good to a
consumer, then the
producer surplus will be
a.
$0 or slightly more.
b.
$50 or slightly less.
c.
$150 or slightly less.
d.
$200 or slightly more.
36.
Refer to Table 7-12. If Evan, Selena, and Angie sell the good, and the resulting producer surplus
is $300, then the
price must have been
a. $200.
b. $300.
c. $450.
d. $600.
37.
Refer to Table 7-12. If Evan, Selena, Angie, and Kris sell the good, and the resulting producer
surplus is $700,
then the price must have been
a. $200.
b. $300.
c. $500.
d. $700.
Consumers, Producers, and the Efficiency of Markets 1817
Table 7-13
The numbers reveal the opportunity costs of providing 10 piano lessons of equal quality.
Seller
Cost
Marcia
$200
Jan
$250
Cindy
$350
Greg
$400
Peter
$700
Bobby
$800
38.
Refer to Table 7-13. You wish to purchase 10 piano lessons, so you take bids from each of the
sellers. You will
not accept a bid below a seller’s cost because you are concerned that the seller
will not provide all 10 lessons.
What bid will you accept?
a.
$351
b.
$251
c.
$249
d.
$199
39.
Refer to Table 7-13. You wish to purchase 10 piano lessons for yourself and for your brother,
so you take bids
from each of the sellers. You will take lessons at the same time, so one teacher
cannot provide lessons to both of
you. You must pay the same price for both sets of lessons, and
you will not accept a bid below a seller’s cost
because you are concerned that the seller will not
provide all 10 lessons. What bid will you accept?
a.
$351
b.
$349
c.
$201
d.
$199
40.
Refer to Table 7-13. The equilibrium market price for 10 piano lessons is $400. What is the total
producer surplus
in the market?
a.
$0
b.
$300
c.
$400
d.
$700
41.
Refer to Table 7-13. The equilibrium market price for 10 piano lessons is $300. What is the total
producer surplus
in the market?
a.
$50
b.
$150
c.
$1,050
d.
$1,500
42.
Refer to Table 7-13. You wish to purchase 10 piano lessons, so you take bids from each of the
sellers. The bids
are required to be rounded to the nearest dollar. You will not accept a bid below
a seller’s cost because you are
concerned that the seller will not provide all 10 lessons. Your
parents have given you $450 to spend on piano
lessons. You believe that the sellers with higher
opportunity costs offer higher quality lessons. You want the highest
quality lessons that you can
afford, but you can spend any remaining money on dinner with friends. From whom will
you take
lessons, and how much money will you spend?
a.
Peter; $450
b.
Cindy; $450
c.
Greg; $401
d.
Cindy; $401
1820 Consumers, Producers, and the Efficiency of Markets
Table 7-14
The only four producers in a market have the following costs:
Seller
Cost
Abbey
$30
Bev
$40
Carl
$55
Dale
$65
43.
Refer to Table 7-14. If the sellers bid against each other for the right to sell the good to a single
consumer, then
the good will sell for
a.
$30 or slightly more.
b.
$40 or slightly less.
c.
$55 or slightly less.
d.
$65 or slightly less.
44.
Refer to Table 7-14. If the sellers bid against each other for the right to sell the good to a single
consumer, then
the producer surplus will be
a.
$0 or slightly more.
b.
$5 or slightly less.
c.
$10 or slightly less.
d.
$25 or slightly less.
45.
Refer to Table 7-14. If Abbey, Bev, and Carl sell the good, and the resulting producer surplus is
$55 altogether,
then the price must have been
a.
$40.
b.
$50.
c.
$60.
d.
$70.
Table 7-15
Seller
Cost
LeBron
$700
Kobe
$600
Kevin
$450
Steve
$400
46.
Refer to Table 7-15. You want to hire a professional photographer to take pictures of your
family. The table
shows the costs of the four potential sellers in the local photography market.
You take bids from the sellers. Who
offers the winning bid, and what does he offer to charge for
the photography session?
a.
Steve; more than $400 but less than $450
b.
Steve; $399
c.
LeBron; more than $700
d.
LeBron; more than $600 but less than $700
47.
Refer to Table 7-15. You and your best friend want to hire a professional photographer to take
pictures of your
two families. The table shows the costs of the four potential sellers in the local
photography market. You and your
friend take bids from the sellers. Who offers the two winning
bids, and what do they offer to charge for the
photography sessions?
a.
LeBron and Kobe; more than $450 but less than $600
b.
Kevin and Steve; more than $450 but less than $600
c.
LeBron and Kobe; more than $700
d.
Kevin and Steve; less than $400
48.
Refer to Table 7-15. You want to hire a professional photographer to take pictures of your
family. The table
shows the costs of the four potential sellers in the local photography market.
You hire Kevin for a price of $500.
What is his producer surplus?
a.
$500
b.
$150
c.
$100
d.
$50
49.
Refer to Table 7-15. You and your best friend want to hire a professional photographer to take
pictures of your
two families. The table shows the costs of the four potential sellers in the local
photography market. You and your
friend agree to offer $500 for each session. Who accepts the
offer, and what is the total producer surplus in the
market?
a.
LeBron and Kobe; $500
b.
Kevin and Steve; $500
c.
LeBron and Kobe; $300
d.
Kevin and Steve; $150
50.
Refer to Table 7-15. You want to hire a professional photographer to take pictures of your
family. The table
shows the costs of the four potential sellers in the local photography market.
Which of the following graphs
represents the market supply curve?
a.
b.
c.
d.
Consumers, Producers, and the Efficiency of Markets 1825
Figure 7-9
51.
Refer to Figure 7-9. If the price of the good is $9.50, then producer surplus is
a. $3.00.
b. $6.50.
c. $10.50.
d. $8.50.
52.
Refer to Figure 7-9. If the price of the good is $14, then producer surplus is
a. $19.50.
b. $22.50.
c. $20.50.
d. $25.00.
53.
Refer to Figure 7-9. If producer surplus is $19, then the price of the good is
a. $11.50.
b. $14.50.
c. $13.50.
d. $9.75.
Consumers, Producers, and the Efficiency of Markets 1827
Figure 7-10
54.
Refer to Figure 7-10. Which area represents producer surplus when the price is P1?
a.
BCG
b.
ACH
c.
ABGD
d.
DGH
55.
Refer to Figure 7-10. Which area represents producer surplus when the price is P2?
a.
BCG
b.
ACH
c.
ABGD
d.
AHGB
56.
Refer to Figure 7-10. Which area represents the increase in producer surplus when the price
rises from P1 to
P2?
a.
BCG
b.
ACH
c.
ABGD
d.
AHGB
57.
Refer to Figure 7-10. When the price rises from P1 to P2, which area represents the increase in
producer surplus
to existing producers?
a.
BCG
b.
ACH
c.
DGH
d.
ABGD
58.
Refer to Figure 7-10. Which area represents the increase in producer surplus when the price
rises from P1 to P2
due to new producers entering the market?
a.
BCG
b.
ACH
c.
DGH
d.
AHGB
1830 Consumers, Producers, and the Efficiency of Markets
Figure 7-11
59.
Refer to Figure 7-11. If the supply curve is S, the demand curve is D, and the equilibrium price
is $100, what is
the producer surplus?
a.
$625
b.
$1,250
c.
$2,500
d.
$5,000
60.
Refer to Figure 7-11. If the supply curve is S’, the demand curve is D, and the equilibrium price
is $150, what is the producer surplus?
a. $625
b. $1,250
c. $2,500
d. $5,000
61.
Refer to Figure 7-11. If the demand curve is D and the supply curve shifts from S’ to S, what
is the change in
producer surplus?
a.
Producer surplus increases by $625.
b.
Producer surplus increases by $1,875.
c.
Producer surplus decreases by $625.
d.
Producer surplus decreases by $1,875.
62.
Refer to Figure 7-11. If the supply curve is S and the demand curve shifts from D to D’, what
is the change in
producer surplus?
a.
Producer surplus increases by $3,125.
b.
Producer surplus increases by $5,625.
c.
Producer surplus decreases by $3,125.
d.
Producer surplus decreases by $5,625.
63.
Refer to Figure 7-11. If the supply curve is S and the demand curve shifts from D to D’, what
is the increase in producer surplus to existing producers?
a. $625
b. $2,500
c. $3,125
d. $5,625
