EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 9780134516196
Author: BADE
Publisher: PEARSON CO
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Question
Chapter 6, Problem 2MCQ
To determine
To select:
The statement which is false in the given options.
Expert Solution & Answer
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Students have asked these similar questions
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.
I don't understand the meaning of this sentence. This is the concept that experts say when answering questions. Could you explain that? Why is consumer surplus equal to the utility obtained in consumption?
Utility refers to the total amount of satisfaction that derived from the consumption of goods and services. The person's consumer surplus in this case is equal to the utility he derived from the consumption.
How would you decide "how many pizza slices to eat a buffet? Which two laws to consider?
A.
compare the demand and supply for pizza
B.
compare the marginal benefit of the next slice and the price of the slice
C.
compare the marginal benefit of the next slice and the marginal cost of the next slice.
D.
eat as many as you want to eat and not full yet.
Chapter 6 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 6 - Prob. 1SPPACh. 6 - Prob. 2SPPACh. 6 - Prob. 3SPPACh. 6 - Prob. 4SPPACh. 6 - Prob. 5SPPACh. 6 - Prob. 6SPPACh. 6 - Prob. 7SPPACh. 6 - Prob. 8SPPACh. 6 - Prob. 9SPPACh. 6 - Prob. 10SPPA
Ch. 6 - Prob. 11SPPACh. 6 - Prob. 12SPPACh. 6 - Prob. 1IAPACh. 6 - Prob. 2IAPACh. 6 - Prob. 3IAPACh. 6 - Prob. 4IAPACh. 6 - Prob. 5IAPACh. 6 - Prob. 6IAPACh. 6 - Prob. 7IAPACh. 6 - Prob. 8IAPACh. 6 - Prob. 9IAPACh. 6 - Prob. 1MCQCh. 6 - Prob. 2MCQCh. 6 - Prob. 3MCQCh. 6 - Prob. 4MCQCh. 6 - Prob. 5MCQCh. 6 - Prob. 6MCQCh. 6 - Prob. 7MCQ
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- Explain the concepts of consumer and producer surplus? How do they determine the efficiency of a market system? How does this contribute to economists' view of "the big trade-off?arrow_forward9. Total net benefit On the following graph, use the black point (cross symbol) to indicate the equilibrium price and quantity of smartphones. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. Hint: Clicking a shaded area, after plotting it on the graph, will show you the total area of the shaded region. ? PRICE (Dollars per phone) 100 90 80 70 60 50 40 20 10 0 The Supply and Demand for Smartphones Demand 0 Supply 40 80 240 120 160 200 QUANTITY (Phones) 280 3:20 Total net benefit (or total surplus) in this market is S 360 400 + Equilibrium A Consumer Surplus Producer Surplus Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.arrow_forwardDiscuss it in your own understanding and then give example each of the following: Consumer and Producer goods Demands Law of demand Utility and Demandarrow_forward
- Figure 5.1 shows an individual's demand curve for time per month spent telecommunicating while driving (talking on the car phone.) A car phone is useless except for talking with somebody who is not in the car. If calls are priced at ten cents per minute, what is the consumer surplus derived from talking? What is the most this person would pay for the car phone? Explainarrow_forwardAssume 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 decreasedarrow_forwardQuestion 7 Cindy is planning to sell her house. She is considering making two upgrades for the house before selling it. Painting the whole house will cost $15,000. Replacing the old windows will cost $25,000. Cindy’s real estate agent told her that the new painting will increase the value of the house by $12,000 and the new windows will increase the value of the house by $28,000. What is the marginal cost and marginal benefit of painting the whole house? Marginal cost Marginal benefit A: $12,000 $15,000 B: $15,000 $12,000 C: $3,000 $3,000 D: $3,000 -$3,000arrow_forward
- 9, what is primarily concerned with markets for goods, services and resourcesarrow_forwardthere are 4 consumers willing to pay the following amountd a-7 b-2 c-8 d-5 there are 4 haircutting firms with the following cost e-3 f-6 g-4 h-2 each firm has a capacity to produce only one haircut. for efficiency, how many haircuts should be given? which business should cut hair cut ?how large is the maximum possible total surplus? explain with diagramarrow_forwardThe minimum price that producers must receive to induce them to produce another unit of a good or service is equal to the good's ___________. Question 1 options: a) marginal cost b) marginal benefit c) producer surplusarrow_forward
- Look at question 9 and use the info on chart to answer question 10 E on how did the price change the total surplus compared to free market equilibrium on question 9arrow_forwardWhat is a market?a. Name five types of markets in which you participate.b. What markets trade economic resources?arrow_forward1. It is primarily the basis of economic activity a. economics b. scarcity c. social science d. abundance 2. What happen to the demand for tilapia if the price of bangus will go down? a. prices of tilapia remains b. price of bangus remains c. shift to the right d. shift to the left If cruz family lessens their demand expenditures for rice because they want pandesal for their breakfast, this is a. time efficient b. taste and preference c. decrease in income d. saving for cooking gasarrow_forward
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