Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971509
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 7, Problem 2CQQ
To determine
The impact of price increase on consumer surplus .
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The demand curve for cookies is downward-sloping.
When the price of cookies is $2, the quantity
demanded is 100. If the price rises to $3,
what happens to consumer surplus?
a. It falls by less than $100.
b. It falls by more than $100.
c. It rises by less than $100.
d. It rises by more than $100.
A consumer is willing to pay $300 for cricket match. The cost of the ticket is $120. What is consumer surplus ?
The price of apples that shane buys monthly drops from $8 to $4, the equilibrium quantity is 4.
What would be the increase amount of consumer surplus?
Chapter 7 Solutions
Principles of Macroeconomics (MindTap Course List)
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- Consumer Surplus is defined as the area between____________ Question 5Answer a. the supply curve, the demand curve, Q = 0 and the quantity exchanged b. the price paid, the demand curve, Q = 0 and the quantity exchanged c. the price paid, the supply curve, Q = 0 and the quantity exchanged d. the price paid, the demand curve, Q = 0 and the efficient quantityarrow_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 demand curve for cookies is downward sloping. When the price of cookies is $3.00, the quantity demanded is 100. If the price falls to $2.00 what happens to consumer surplus?arrow_forward
- ppose the market condition for good X is characterized by an inelastic supply curve and a perfectly-elastic demand curve. Which of the following is true? It may help to draw the diagram first and then attempt the question. A- Consumer surplus is0 B-Producer surplus is higher than consumer surplus C-Consumer surplus is 0 Producer surplus and consumer surplus are equal D-Not enough information givenarrow_forwardOn the Dollar value of the X axis starts at 0 at corner of the graph and goes up 1, 2, 3 and the highest being 4 and quantity Y axis is starts at 0 goes up 5, 10, 15 and 20. What is consumer surplus when the price is $1.00? A. $22.5 B. $15 C. $30 D. $21.5arrow_forwardThe cookie demand curve slopes downward. When the price of cookies is $ 2, the quantity demanded is 100. If the price increases to $ 3, what happens to the consumer surplus?arrow_forward
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