Figure: Producer Surplus III
Reference: Ref 4-21
(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:
Answer $5.
126. Multiple Choice: Total surplus is:
Question Total surplus is:
Answer the difference between price and the cost to the seller.
127. Multiple Choice: Maximum total surplus in the market f...
Question Maximum total surplus in the market for chocolate occurs when:
Answer total net gain to producers is generated from trading in the market.
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128. Multiple Choice: The total surplus generated in a mark...
Question The total surplus generated in a market is:
Answer the excess supply due to a price above the equilibrium price.
129. Multiple Choice: Figure: The Market for Hamburgers Ref…
Question Figure: The Market for Hamburgers
Reference: Ref 4-22
(Figure: The Market for Hamburgers) Look at the figure The Market for Hamburgers.
The maximum total surplus for the market is ________, and it occurs at a price
equal to ________.
Answer $550; $1.50
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130. Multiple Choice: Suppose you pay $8 to see Tom Cruise ...
Question Suppose you pay $8 to see Tom Cruise in his next movie. Suppose Mr. Cruise
receives $21 million to work in this movie. This means that:
Answer you would have been better off being more self-reliant in the movie market.
131. Multiple Choice: Total surplus is:
Question Total surplus is:
the total net gain to producers from trading in the market.
132. Multiple Choice: Figure: The Market for Sandwiches Ref...
Question
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Figure: The Market for Sandwiches
Reference: Ref 4-23
(Figure: The Market for Sandwiches) Look at the figure The Market for Sandwiches.
At the competitive price of $5, 10 sandwiches are sold. At this competitive price,
consumer surplus equals ________ and producer surplus equals ________.
Answer $50; $50
133. Multiple Choice: Alex is willing to buy the last ticke…
Question Alex is willing to buy the last ticket to the Billy Bragg concert for $15, while Jake is
willing to pay $25. Alex is first in line and buys a ticket for $15. He then resells his
ticket to Jake for $20. By reselling the ticket instead of going to the concert
himself, Alex caused:
consumer surplus to decrease and producer surplus to increase.
134. Multiple Choice: Suppose the equilibrium rent for apar...
Question Suppose the equilibrium rent for apartments in Boston is $1,600. If the city of
Boston regulates rents and each landlord charges $1,200, there will be:
Answer an increase in producer surplus for each landlord.
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135. Multiple Choice: Which of the following is true when a...
Question Which of the following is true when a market is in equilibrium and there is no
outside intervention to change the equilibrium price?
Answer Total surplus is minimized.
136. Multiple Choice: If the market for grapefruit is in eq...
Question If the market for grapefruit is in equilibrium without any outside intervention to
change the equilibrium price:
Answer total surplus is minimized.
137. Multiple Choice: A competitive market for cell phone c...
Question A competitive market for cell phone chargers is currently in equilibrium. If the price
is below the equilibrium price in the cell phone charger market, what will happen to
producer surplus?
Answer producer surplus will rise.
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138. Multiple Choice: When a market is efficient:
Question When a market is efficient:
there are ways to make everyone better off.
139. Multiple Choice: If the government were to intervene i...
Question If the government were to intervene in the market by lowering the price below the
equilibrium price of a good, which of the following would not occur?
Answer Some consumers would receive an increase in consumer surplus.
140. Multiple Choice: If there is an increase in demand, to...
Question If there is an increase in demand, total surplus:
may change, but we can’t tell how.
141. Multiple Choice: If there is an increase in supply, to...
Question If there is an increase in supply, total surplus:
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may change, but we can’t tell how.
142. Multiple Choice: If there is a decrease in demand, tot...
Question If there is a decrease in demand, total surplus:
Answer will increase.
143. Multiple Choice: If there is a decrease in supply, tot...
Question If there is a decrease in supply, total surplus:
Answer will increase.
144. Multiple Choice: If total surplus falls, which of the …
Question If total surplus falls, which of the following must have occurred?
Answer There was an increase in demand or a decrease in supply.
145. Multiple Choice: If total surplus rises, which of the ...
Question If total surplus rises, which of the following must have occurred?
Answer There was an increase in demand and a decrease in supply.
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146. Multiple Choice: Figure: The Gains from Trade Referenc...
Question Figure: The Gains from Trade
Reference: Ref 4-24
(Figure: The Gains from Trade) Look at the figure The Gains from Trade. What is
the total surplus in this market when the demand curve is D1 and the market is in
equilibrium?
Answer $25
147. Multiple Choice: Figure: The Gains from Trade Referenc...
Question
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Figure: The Gains from Trade
Reference: Ref 4-24
(Figure: Gains from Trade) Look at the figure The Gains from Trade. What is the
total surplus in this market when the demand curve is D2 and the market is in
equilibrium?
Answer $31.25
148. Multiple Choice: Figure: The Gains from Trade Referenc...
Question
Points: 0
Figure: The Gains from Trade
Reference: Ref 4-24
(Figure: Gains from Trade) Look at the figure The Gains from Trade. When demand
increases from D1 to D2, equilibrium total surplus:
Answer decreases by $10.
149. Multiple Choice: Coffee and tea are substitutes. If th...
Question Coffee and tea are substitutes. If there is an increase in the price of coffee, total
surplus in the tea market:
may change, but we cannot determine the change without more information.
150. Multiple Choice: If a frost destroys much of the grape…
Question If a frost destroys much of the grapefruit crop, total surplus:
Answer will increase.
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151. Multiple Choice: If the price is above the equilibrium…
Question If the price is above the equilibrium price in the market for grapefruit, total surplus:
Answer will increase.
152. Multiple Choice: If the price is below the equilibrium...
Question If the price is below the equilibrium price in the market for grapefruit, total surplus:
Answer will increase.
153. Multiple Choice: Suppose a competitive market has a do...
Question Suppose a competitive market has a downward-sloping demand curve and a
horizontal supply curve. If the supply curve shifts downward, what will happen to
equilibrium price, equilibrium quantity, consumer surplus, and producer surplus?
Answer decrease, increase, increase, decrease
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154. Multiple Choice: Figure: Consumer and Producer Surplus...
Question Figure: Consumer and Producer Surplus
Reference: Ref 4-25
(Figure: Consumer and Producer Surplus) Look at the figure Consumer and
Producer Surplus. If the price is held above equilibrium in this market, compared
with the equilibrium price, consumer surplus ________ and total surplus ________.
Answer increases; decreases
155. Multiple Choice: Figure: Consumer and Producer Surplus...
Question
Points: 0
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Figure: Consumer and Producer Surplus
Reference: Ref 4-25
(Figure: Consumer and Producer Surplus) Look at the figure Consumer and
Producer Surplus. In the figure, if the price is held below the equilibrium price in
this market, producer surplus ________ and total surplus ________.
156. Multiple Choice: Figure: Consumer and Producer Surplus...
Question Figure: Consumer and Producer Surplus
Reference: Ref 4-25
(Figure: Consumer and Producer Surplus) Look at the figure Consumer and
Producer Surplus. In the accompanying figure, an increase in supply will:
Points: 0
Answer increase consumer surplus.
157. Multiple Choice: Peanut butter is an inferior good. If...
Question Peanut butter is an inferior good. If there is an increase in income, total surplus in
the peanut butter market:
Answer will increase.
158. Multiple Choice: If more agricultural land is devoted ...
Question If more agricultural land is devoted to producing peanuts, total surplus in the peanut
butter market:
159. Multiple Choice: Which of the following is a key facto…
Question Which of the following is a key factor in the effectiveness of well-functioning
markets?
Answer Outcomes that are equitable for consumers and producers
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160. Multiple Choice: Market failure refers to a situation ...
Question Market failure refers to a situation in which:
Answer markets fail to reach a fair outcome.
161. Multiple Choice: All of the following are possible rea...
Question All of the following are possible reasons for market failure, except:
Answer monopoly firms.
162. Multiple Choice: In the market for corn, total surplus...
Question In the market for corn, total surplus ________ when the price of ethanol increases.
163. Multiple Choice: Figure: Gain in Consumer Surplus Refe...
Question
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Figure: Gain in Consumer Surplus
Reference: Ref 4-26
(Figure: Gain in Consumer Surplus) Look at the figure Gain in Consumer Surplus.
Identify the area or areas that represent the gain in consumer surplus to
consumers already participating in the market when the price falls from P1 to P2.
164. Multiple Choice: Figure: Gain in Consumer Surplus Refe...
Question Figure: Gain in Consumer Surplus
Reference: Ref 4-26
(Figure: Gain in Consumer Surplus) Look at the figure Gain in Consumer Surplus.
Identify the area or areas that represent the total change in consumer surplus when
the price falls from P1 to P2.
Answer A and B
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165. Multiple Choice: Figure: The Wireless Mouse Market R…
Question Figure: The Wireless Mouse Market
Reference: Ref 4-27
(Figure: Wireless Mouse Market) Look at the figure The Wireless Mouse Market.
Calculate producer surplus when the market is in equilibrium.
Answer $4,000
166. Multiple Choice: Figure: The Wireless Mouse Market R…
Question
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Figure: The Wireless Mouse Market
Reference: Ref 4-27
(Figure: Wireless Mouse Market) Look at the figure The Wireless Mouse Market.
Calculate the change in producer surplus when the price increases from $10 to
$15.
Answer $250
167. 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 P1 to P2?
Answer A, B, and C
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