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- 1. Multiple Choice
What area represents producer surplus in the graph shown here if this market is in equilibrium?
P2MP0
P4MP2
LMN
P4PLN
P0MP4
- 2. Multiple Choice
Consumer surplus is the buyer's willingness to pay minus the seller's cost.
True
False
- 3. Multiple Choice
Consumer surplus decreases when the price in that market increases.
True
False
- 4. Multiple Choice
Consumer surplus is the area
below the demand curve and above the price.
above the supply curve and below the price.
above the demand curve and below the price.
above the demand curve and below the price.
- 5. Multiple Choice
A buyer's willingness to pay is that buyer's
minimum amount they are willing to pay for a good.
producer surplus.
consumer surplus.
maximum amount they are willing to pay for a good.
- 6. Multiple ChoiceYou are the manager of Fun World, a small amusement park that only charges per ride. The diagram shows the demand curve for a typical customer. At $5 per ride, how much consumer surplus does each customer get?$5$15$25$50
- 7. Multiple Choice
Producer Surplus is the area
Below the price and above the supply curve
Under the supply curve
Between the supply and demand curves
Under the demand curve, and above the price
- 8. Multiple Choice
Other things being equal, if the price of a good falls, the consumer surplus
May increase, decrease, or remain unchanged
Increases
Is unchanged
Decreases
- 9. Multiple Choice
If a buyer's willingness to pay for a new Honda is €20,000 and she is able to actually buy it for €18,000, her consumer surplus is
€18,000
€20,000
€2,000
€38,000
- 10. Multiple ChoiceWhen the demand for a product or service is higher than the supply this causes what?shortageconsumersurplusequilibrium
- 11. Multiple ChoiceWhen the supply of a product or service goes up and the demand stays the same the Price will typically do what?risefallstay the sameConsumer
- 12. Multiple ChoiceThe amount of goods or services available is called?supplydemandproducerconsumer
- 13. Multiple Choice
When the price is P1, consumer surplus is
A
A + B
A + B + C
A + B + D
- Answer choicesTagsAnswer choicesTags