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4)Which of the following correctly describes
a)Maximum buying
b)rice received - price paid.
c)Maximum buying price - price paid.
d)Price received - minimum selling price
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- Figure 7-1 Refer to Figure 7-1. If the price of the good is $50, then consumer surplus amounts to Group of answer choices $400. $500. $600. $750.6 Consumer surplus for an entire market is calculated by Select one: Finding the area above the demand curve but below the market price Adding up all the individual total surpluses Adding up all the individual consumer surpluses Multiplying the market price by the market quantityJanice is willing to pay $100 for the first pair of shoes, $80 for the second pair, $50 for a third, and $30 for a fourth. If shoes cost $50, Janice will buy _____ pairs of shoes and her total consumer surplus will equal _______.
- 1. Assume that good Z is an inferior good for a consumer. If the consumer's income increases, then A. the quantity supplied of good Z will increase. B. the quantity supplied of good Z will decrease. C. the quantity demanded of good Z will increase. D. the quantity demanded of good Z will decrease. 2. If the prevailing market price is the market equilibrium price, then A. QD = QS (quantity demanded = quantity supplied). B. no shortage will occur in the marketplace. C. no surplus will occur in the marketplace. D. price is not expected to rise nor fall. E. All of above.Question 39 You are considering buying a monthly metro pass for the subway at $100 or paying $4 per ride (Pd). Your monthly demand curve is Pd = 60-2Qd where Qd is the number of rides per month. Given this information, your consumer surplus will be $784 buying each ride and $800 with the monthly pass. $600 buying each ride and $700 with the monthly pass. $784 buying each ride and $750 with the monthly pass. $750 buying each ride and $900 with the monthly pass.Table 4-6 Price (Dollars per unit) Quantity Demanded (Units) Quantity Supplied (Units) 5 30 80 4 40 65 3 50 50 2 60 35 1 70 20 18. Refer to Table 4-6. If the price were $4, a a. shortage of 10 units would exist, and price would tend to rise. b. surplus of 25 units would exist, and price would tend to fall. c. shortage of 25 units would exist, and price would tend to rise. d. surplus of 10 units would exist, and price would tend to fall.
- 22) Assume your demand for Tango remains constant, but the price of Tango increases. Your consumer surplus A) increases. B) decreases. C) remains constant. D) may increase or decrease depending on the amount of the price decreaseSuppose the market is in equilibrium at point E2. Which of the following is true? 1. Total surplus is maximized 2. There is a deadweight loss due to underproduction 3. There is a surplus of the good 4. There is a deadweight loss due to overproductionConsumer surplus is calculated: Question 20 options: By taking the consumers' willingness to pay for a good or service plus the price they actually pay. By taking the consumers' willingness to pay for a good or service minus the price they actually pay. By taking the price consumers actually pay for a good or service minus their willingness to pay for the good or service. By taking the seller's willingness to sell a good or service (i.e. seller's cost) minus the price consumers actually pay for the good or service.
- As gasoline prices go up, in the long run, people are more likely to turn to renewable fuelsWhen the demand for goods X is elastic, then increasing the price of goods X as a strategy to increase income is the right strategy when the price in the store drops to Rp. 50, does the total consumer surplus drop to under Rp. 60? True or false?What is meant by consumer surplus? a It is the total quantity of a good bought by a consumer divided by the price paid. b It is a measure of an individual consumer's utility from the consumption of a good. c It is the difference between a consumer's maximum willingness to pay and the price. d It is a measure of the total benefit to consumers from the purchase of a good.Assume all benefits (and costs) accrue to the buyers (and sellers) and the buyers and sellers interact in a market. Currently we have three buyers who value a good at $40. There are three possible sellers A, B, C whose marginal costs of production are $20, $30 and $50. Another seller, D, enters the market. D's marginal costs of production is $40. What is the change in surplus caused by D's entry?Do not include the $ sign and remember to include a negative sign if you want to say that surplus has decreased
