Consumer surplus is equal to: the consumer's willingness to pay for the good, minus the marginal cost of producing the good. the price of the good, minus the marginal cost of producing the good. the consumer's maximum willingness to pay for the good, minus the price of the good. the marginal cost of the good, minus the consumer's willingness to pay for the good.

Consumer surplus is equal to: the consumer's willingness to pay for the good, minus the marginal cost of producing the good. the price of the good, minus the marginal cost of producing the good. the consumer's maximum willingness to pay for the good, minus the price of the good. the marginal cost of the good, minus the consumer's willingness to pay for the good.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter6: Simple Pricing

Section: Chapter Questions

Problem 8MC

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Consumer surplus is defined as the Group of answer choices difference between the willingness to pay for a good and the willingness to sell it. quantity of units that consumers want to buy at the market price. difference between the willingness to pay for a good and the price paid to get it. total revenue earned from producing and selling some good. difference between the price the seller receives and the willingness to sell it.
___________ surplus is the difference between the maximum price a consumer is (or consumers are) willing to pay for a product and the actual [market] price. Producer Consumer
Producer surplus: is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price. rises as equilibrium price falls. is the difference between the minimum prices producers are willing to accept for a product and the higher equilibrium price. is the difference between the maximum prices consumers are willing to pay for a product and the minimum prices producers are willing to accept.
Which quantity does Producer Surplus NOT measure? Question 28 options: the amount sellers are paid less the amount they were willing to accept the benefit to sellers of participating in a market the amount sellers receive above the minimum they would accept the total value of a good to sellers
Consumer 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.
Consumer surplus is measured as the area: between the demand curve, the supply curve, and the price axis above the demand curve. between the vertical axis, the demand curve, and a horizontal line through the market price. between the demand curve and the horizontal axis.
Answer questions as either True or False. If the answer is false, explain why it is false. Question 6 Consumer surplus is the area above the demand curve but below price. Question 7 The producer surplus for a particular unit is equal to the vertical distance between price and the supply curve. Question 8 Social efficiency is an allocation of resources in which consumer and producer surplus are equal. Question 9 A deadweight loss results when resources are allocated in an unequal manner.
Which of the following statements is correct? Select one: a. Consumer surplus can be high for a low-priced good and low for a high priced good. b. Consumer surplus is always greater than producer surplus. c. The price of water is low relative to that of cars because the government provides water at affordable prices for households as a public service. d. The price of a good reflects its value to the consumer.
If the market price of a good decreases, the quantity demanded will Multiple Choice decrease and consumer surplus will increase. increase and consumer surplus will decrease. decrease and consumer surplus will decrease. increase and consumer surplus will increase.
Producer surplus is calculated: Question 15 options: 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 the good or service minus the seller's willingness to sell a good or service (i.e. seller's cost). 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.
Consumer surplus is a measure of the difference between:
When a market is in equilibrium, the total amount of consumer surplus must be--------- the total amount of producer surplus. 1)equal to 2)larger than 3)less than 4)none of these