SECTION# NAME PRINT LAST NAME, FIRST NAME CONSUMERS, PRODUCERS, AND MARKET EFFICIENCY Use the graph below to answer questions 1 through 6. Price ($) 20 Supply 15 10 40(1D) = 400 20 0 7.50 40(5): 266 Demand 20 40 25=PS 60 80 Quantity 2013)= 100 <0 The marginal benefit of the 20th unit is $7.50; $15 $10; $10 and the marginal cost of the 20th unit is $15; $7.50 $5; $5 1. V. 75 a. C. d. 200-75: and the marginal cost of the 40th unit is $15; $7.50 $5; $5 The marginal benefit of the 40th unit is $7.50; $15 $10; $10 2. 228 C. d. b. units and 3. If the price of this product is $10 per unit, consumers will purchase consumer surplus will equal $. b. 40; 200 d. 40; 50 20; 200 c. 20; 50 a. units and producer surplus If the price of this product is $10 per unit, firms will sell will equal $ 20; 25 4. 40; 100 d. 40; 25 20; 100 C. b. a. units because marginal benefit (MB) equals 5. The efficient level of output is at this output level and the sum of consumer and producer surplus is 40; MC; maximized C. 40; 40; 0 20; MC; 0 a. 20; 40; maximized r the quantity exchanged in this market is limited to 20 units, the resulting deadweight loss is equal to: 6. $150. $100. $75. $50. b. a. (20)(45-7.50) 800- Chapter 6 Assignments 127 SECTION# NAME PRINT LAST NAME, FIRST NAME and product price and producer Consumer surplus is the difference between surplus is the difference between marginal benefit; marginal cost marginal cost; marginal benefit total benefit; total cost total cost; total benefit 7. and product price. a. d. Buyers gain consumer surplus when the market price is: greater than the highest price buyers are willing to pay. less than the highest price buyers are willing to pay. just equal to the highest price buyers are willing to pay. determined by a price floor rather than market forces. 8. b. C. Which of the following statements best illustrates the concept of producer surplus? 9. Rose's Flower Shop is forced to sell surplus tulips at a price that is below cost because inventories are too high. A new client agrees to pay $50 a week for cleaning provided by Alice's Cleaning Service, although the business would be willing to accept $25 to perform these b. services. Steve found a scalper willing to sell him concert tickets for less than their original price. Maria refuses to work overtime despite being offered twice her regular wage rate because she cannot make arrangements for child care. Assuming supply is upward-sloping and everything else remains the same, an increase in 10. the demand for a product leads to: an increase in producer surplus. a decrease in producer surplus. no change in producer surplus. no change in consumer surplus. a!

SECTION# NAME PRINT LAST NAME, FIRST NAME CONSUMERS, PRODUCERS, AND MARKET EFFICIENCY Use the graph below to answer questions 1 through 6. Price ($) 20 Supply 15 10 40(1D) = 400 20 0 7.50 40(5): 266 Demand 20 40 25=PS 60 80 Quantity 2013)= 100 <0 The marginal benefit of the 20th unit is $7.50; $15 $10; $10 and the marginal cost of the 20th unit is $15; $7.50 $5; $5 1. V. 75 a. C. d. 200-75: and the marginal cost of the 40th unit is $15; $7.50 $5; $5 The marginal benefit of the 40th unit is $7.50; $15 $10; $10 2. 228 C. d. b. units and 3. If the price of this product is $10 per unit, consumers will purchase consumer surplus will equal $. b. 40; 200 d. 40; 50 20; 200 c. 20; 50 a. units and producer surplus If the price of this product is $10 per unit, firms will sell will equal $ 20; 25 4. 40; 100 d. 40; 25 20; 100 C. b. a. units because marginal benefit (MB) equals 5. The efficient level of output is at this output level and the sum of consumer and producer surplus is 40; MC; maximized C. 40; 40; 0 20; MC; 0 a. 20; 40; maximized r the quantity exchanged in this market is limited to 20 units, the resulting deadweight loss is equal to: 6. $150. $100. $75. $50. b. a. (20)(45-7.50) 800- Chapter 6 Assignments 127 SECTION# NAME PRINT LAST NAME, FIRST NAME and product price and producer Consumer surplus is the difference between surplus is the difference between marginal benefit; marginal cost marginal cost; marginal benefit total benefit; total cost total cost; total benefit 7. and product price. a. d. Buyers gain consumer surplus when the market price is: greater than the highest price buyers are willing to pay. less than the highest price buyers are willing to pay. just equal to the highest price buyers are willing to pay. determined by a price floor rather than market forces. 8. b. C. Which of the following statements best illustrates the concept of producer surplus? 9. Rose's Flower Shop is forced to sell surplus tulips at a price that is below cost because inventories are too high. A new client agrees to pay $50 a week for cleaning provided by Alice's Cleaning Service, although the business would be willing to accept $25 to perform these b. services. Steve found a scalper willing to sell him concert tickets for less than their original price. Maria refuses to work overtime despite being offered twice her regular wage rate because she cannot make arrangements for child care. Assuming supply is upward-sloping and everything else remains the same, an increase in 10. the demand for a product leads to: an increase in producer surplus. a decrease in producer surplus. no change in producer surplus. no change in consumer surplus. a!

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 11SCQ: The state of Colorado requires oil and gas companies who use fracking techniques to retune the land...

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