168. Multiple Choice: Figure: Change in the Total Surplus R…
Question Figure: Change in the Total Surplus
Reference: Ref 4-28
(Figure: Change in Total Surplus) Look at the figure Change in the Total Surplus.
Which of the following areas represent the change in total surplus when the price
falls from P2 to P3?
Answer A, B, and C
169. Multiple Choice: Suppose the market demand for TV remo…
Question Suppose the market demand for TV remotes is given by the equation Qd = 100 –
2P, where P is the price and Qd represents the number of TV remotes. If the
market price of TV remotes is $40, then the quantity demanded would equal
________ and the value of consumer surplus will be ________.
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2; $40
170. Multiple Choice: Suppose the market demand curve for T…
Question Suppose the market demand curve for TV remotes is given by the equation Qd =
100 – 2P, where P is the price and Qd represents the number of TV remotes
demanded. If the market price of TV remotes is $10, then the quantity demanded
would equal ________ and the value of consumer surplus will be ________.
Answer 20; $100
171. Multiple Choice: Reference: Ref 4-33 (Table: Quantity...
Question
Reference: Ref 4-33
(Table: Quantity Supplied and Quantity Demanded) Look at the table Quantity
Supplied and Quantity Demanded. If this market is in equilibrium and the demand
and supply curves are linear, then the value of consumer surplus is:
$1,500.
172. Multiple Choice: Christine has a linear demand curve f...
Question Christine has a linear demand curve for candy. If she wants to see her consumer
surplus ________, she would like to see a ________ in the market price of candy.
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not change; decrease
173. Multiple Choice: Along a straight line demand curve, a...
Question Along a straight line demand curve, a decrease in the market price of a good:
Answer will cause no change in the value of consumer surplus.
174. Multiple Choice: Reference: Ref 4-34 (Table: Willingn...
Question
Reference: Ref 4-34
(Table: Willingness to Pay for Peanuts) Look at the table Willingness to Pay for
Peanuts. If the price of a bag of peanuts is $4, what is the value of George‘s
consumer surplus?
Answer $4
175. Multiple Choice: Reference: Ref 4-34 (Table: Willingn...
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Question
Reference: Ref 4-34
(Table: Willingness to Pay for Peanuts) Look at the table Willingness to Pay for
Peanuts. If the price of a bag of peanuts is $6, what is the total value of consumer
surplus?
$10
176. Multiple Choice: Reference: Ref 4-34 (Table: Willingn...
Question
Reference: Ref 4-34
(Table: Willingness to Pay for Peanuts) Look at the table Willingness to Pay for
Peanuts. If the price of a bag of peanuts is $9, who will purchase a bag?
Alvin and Theodore
177. Multiple Choice: Reference: Ref 4-34 (Table: Willingn...
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Question
Reference: Ref 4-34
(Table: Willingness to Pay for Peanuts) Look at the table Willingness to Pay for
Peanuts. If the price of a bag of peanuts is $3, the total value of consumer surplus
is equal to:
$21.
178. Multiple Choice: Reference: Ref 4-34 (Table: Willingn...
Question
Reference: Ref 4-34
(Table: Willingness to Pay for Peanuts) Look at the table Willingness to Pay for
Peanuts. If the price of a bag of peanuts is $2:
no one would purchase a bag.
179. Multiple Choice: (Table: Firm‘s Willingness) Look at t...
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Question (Table: Firm’s Willingness) Look at the table Firm’s Willingness. It explains the
relation between the number of reports a firm is willing to produce and the lowest
price it is willing to accept to prepare those reports. If the price of a report is $11,
what is the value of producer surplus for this firm?
Answer $11
180. Multiple Choice: Reference: Ref 4-35 (Table: Firm‘s W…
Question
Reference: Ref 4-35
(Table: Firm’s Willingness) Look at the table Firm’s Willingness. If the price of a
report is $12, what is the value of producer surplus for the firm?
Answer $27
181. Multiple Choice: Reference: Ref 4-35 (Table: Firm‘s W…
Question
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Reference: Ref 4-35
(Table: Firm’s Willingness) Look at the table Firm’s Willingness. If the price of a
report is $6, how many reports will be produced?
Answer 5
182. Multiple Choice: Reference: Ref 4-35 (Table: Firm‘s W…
Question
Reference: Ref 4-35
(Table: Firm’s Willingness) Look at the table Firm’s Willingness. Which of the
following market prices would result in four reports being produced?
Answer $2
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183. Multiple Choice: Reference: Ref 4-35 (Table: Firm‘s W…
Question
Reference: Ref 4-35
(Table: Firm’s Willingness) Look at the table Firm’s Willingness. If the price of
reports is $15, how many reports will the firm produce, and what will the producer
surplus be?
Answer one; $0
184. Multiple Choice: Well-functioning markets allow:
Question Well-functioning markets allow:
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185. Multiple Choice: Figure: A Market in Equilibrium Refer…
Question Figure: A Market in Equilibrium
Reference: Ref 4-36
(Figure: A Market in Equilibrium) Look at the figure A Market in Equilibrium. At the
equilibrium price, this market’s consumer surplus is equal to the area:
Answer ABC.
186. Multiple Choice: Figure: A Market in Equilibrium Refer…
Question Figure: A Market in Equilibrium
Reference: Ref 4-36
(Figure: A Market in Equilibrium) Look at the figure A Market in Equilibrium. At the
equilibrium price, this market’s producer surplus is equal to the area:
Answer ADI.
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187. Multiple Choice: Figure: A Market in Equilibrium Refer…
Question Figure: A Market in Equilibrium
Reference: Ref 4-36
(Figure: A Market in Equilibrium) Look at the figure A Market in Equilibrium. At the
equilibrium price, this market’s total producer and consumer surplus equals the
area:
Answer BCDG.
188. Multiple Choice: A situation in which purchases do not...
Question A situation in which purchases do not occur because the value the potential seller
places on the good exceeds the value a potential consumer places on the good will
occur in:
Answer a market dominated by government regulation.
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189. Multiple Choice: Markets work because they allocate sa...
Question Markets work because they allocate sales to the potential sellers who most value
the right to sell a good, as indicated by their ability to produce the good at the
lowest cost. This statement illustrates:
deadweight loss.
190. Multiple Choice: Well-defined property rights:
Question Well-defined property rights:
lead to more centralized decision making.
191. Multiple Choice: Economic signals:
Question Economic signals:
Answer result in shortages and surpluses.
192. Multiple Choice: Which of the following statements is ...
Question Which of the following statements is true about market failures?
I. A seller produces too much of the good at too high a price.
II. Information is available to all decision makers.
III. External costs are not considered in production decisions by producers.
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Answer Statement I is true.
193. Essay: Reference: Ref 4-29 (Table: Workouts…
Question
Reference: Ref 4-29
(Table: Workouts) Look at the table Workouts. Several times each week Eli works
out at a local health club, but because he is not a member, he pays a price of $10
each time he shows up to use the club facilities. The table shows Eli’s willingness
to pay for each use of the club. How many times will Eli use the health club for a
workout, and how much consumer surplus does he receive?
194. Essay: Reference: Ref 4-29 (Table: Workouts…
Question
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Reference: Ref 4-29
(Table: Workouts) Look at the table Workouts. Suppose that Eli receives an offer
from the club for a weekly membership fee of $50 that allows him to use the club
as much as he wants. How many times will Eli use the club, and how much
consumer surplus will he receive?
195. Essay: Figure: Demand for Cincinnati Reds Ga...
Question Figure: Demand for Cincinnati Reds Games Tickets
Reference: Ref 4-30
(Figure: Demand for Cincinnati Reds Games Tickets) Look at the figure Demand for
Cincinnati Reds Games Tickets. The graph represents Jeff‘s annual demand for
tickets to Cincinnati Reds baseball games. At the current price of $20, Jeff will
purchase five tickets. How much consumer surplus does Jeff receive?
196. Essay: Figure: Demand for Cincinnati Reds Ga...
Question
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Figure: Demand for Cincinnati Reds Games Tickets
Reference: Ref 4-30
(Figure: Demand for Cincinnati Reds Games Tickets) Look at the figure Demand for
Cincinnati Reds Games Tickets. Consider again Jeff‘s demand for Reds baseball
tickets. Suppose the Reds required all fans to purchase a parking pass for each
game at a price of $12. This effectively raises the price of a ticket to $32, and Jeff
will decrease his quantity demanded for Reds baseball by one ticket this year. How
much consumer surplus has Jeff lost?
197. Essay: Reference: Ref 4-31 (Table: Coffee S…
Question
Reference: Ref 4-31
(Table: Coffee Shops) Look at the table Coffee Shops. There are three coffee shops in a
small town. Each can supply cups of coffee but at slightly different marginal costs. These
marginal cost schedules are shown in the table. Use the table to construct the supply
schedule for coffee at prices of $0, $1, $2, and $3.
Answer
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198. Essay: Reference: Ref 4-31 (Table: Coffee S…
Question
Reference: Ref 4-31
(Table: Coffee Shops) Look at the table Coffee Shops. If the price of coffee is $1.75,
how many cups will be supplied and how much producer surplus will be earned by
coffee shops in the town?
199. Essay: Reference: Ref 4-31 (Table: Coffee S…
Question
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Reference: Ref 4-31
(Table: Coffee Shops) Look at the table Coffee Shops. If the price of coffee is $1.75,
show how total producer surplus decreases at any number of cups that differs from
the equilibrium number found in the previous question.
200. Essay: Figure: The Market for Books Referenc…
Question Figure: The Market for Books
Reference: Ref 4-32
(Figure: The Market for Books) Look at the figure The Market for Books. At the
equilibrium price of $24, find the total surplus in the market for books.
201. Essay: Figure: The Market for Books Referenc…
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– Question Type –
Question Figure: The Market for Books
Reference: Ref 4-32
(Figure: Market for Books) Look at the figure The Market for Books. Suppose the
price is temporarily $18. Do consumers gain or lose from this price, and by how
much? Do producers gain or lose from this price control, and by how much? How is
total surplus affected?
202. Essay: Molly must drive across a bridge over…
Question Molly must drive across a bridge over a river eight times each week. Because the
bridge is narrow and traffic is congested, Molly‘s willingness to pay for the eighth
and final weekly trip is $0.50. Now the governor has promised to refurbish this old
bridge and widen it to lessen the congestion and increase traffic flow over the river.
Molly will have to pay extra taxes to finance the repair, but the toll (price) for
crossing the bridge will fall, and she expects to make ten trips instead of just eight.
How would you figure out how much Molly is willing to pay in taxes for the bridge
repair?
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OK