Bundle: Principles of Microeconomics, 7th + LMS Integrated Aplia, 1 term Printed Access Card
7th Edition
ISBN: 9781305242463
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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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.
A. Producer B. Consumer C. None
QUESTION 21
When a product becomes more fashionable, what does happen in the market?
a. Total surplus increases.
b. Consumer surplus decreases.
c. Producer surplus decreases.
d. All of the above decrease.
If the demand curve for chocolate bars is downward sloping and the supply of it decreases, there is __ in consumer surplus; a. an increase, b. no change, c. it's impossible to tell what will happen to consumer surplus, d. a decrease
Chapter 7 Solutions
Bundle: Principles of Microeconomics, 7th + LMS Integrated Aplia, 1 term Printed Access Card
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Similar questions
- To economists, the term "consumer surplus" means: Select one: a. the difference between the price a consumer is willing to pay and the price that suppliers are willing to accept. b. the excess money consumers have left over after purchasing goods. c. the consumer's net benefit from trading. d. the difference between the price a consumer is able to pay and willing to pay.arrow_forwardResearchers find that drinking beer has positive health effects. What impact will this have on the price of beer and producer surplus? Select one: a. they both decrease b. the equilibrium market price increases, and producer surplus decreases c. they both increase d. the equilibrium market price decreases, and producer surplus increasesarrow_forwarda. Draw a supply-demand graph in the market for milk. Indicate equilibrium price and equilibrium quantity. b) in the same graph, indicate a price at which there is a surplus of milk. Show the surplus of milk in your graph.arrow_forward
- If the market demand for a product shifts to the right (parallel to the first demand curve), which of the following is correct? A. producer surplus and consumer surplus both decrease. B. producer surplus increases, consumer surplus decreases C. producer surplus decreases, condumer surplus increases. D. producer surplus and consumer surplus both increasearrow_forwardThe area under the demand curve up to unit Q 1 represents the total ____ of Q 1 to society. A. surplus B. gain C. cost D. benefitarrow_forwardOn a graph, consumer surplus is represented by the area a. between the demand and supply curves. b. below the demand curve and above price. c. below the price and above the supply curve. d. below the demand curve and to the right of equilibrium price.arrow_forward
- 6. Answer the following questions based on the graph below: Price $28 24 22 20 18 es 14 12 10 8 D 4 40 50 70 90 100 110 120 130 140 150 Quantity O 10arrow_forwardWhat 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.arrow_forwardWhat is the term for a situation where an individual or firm has a higher willingness to pay for a good than the market price? A. Consumer surplus B. Producer surplus C. Deadweight loss D. Indifference curvearrow_forward
- Graphically, how is the consumer surplus measured? A. the area under the demand curve and above the market pr B. the area above the demand curve C. the area under the supply curve D. the area above the supply curve and below the market pric Seçimi Sıfırlaarrow_forwardChoose all statements that are true. A. The supply curve represents the behavior of sellers and the supply curve is a function that shows the quantity supplied at different prices. B. An increase in supply means that sellers are willing to sell more quantity at all prices. C. An increase in supply is seen as a SHIFT of the supply to the RIGHT. D. Producer surplus is the area above the supply curve and below the price. E. A supply curve can be read horizontally or vertically. The horizontal reading tells us how much suppliers are willing and able to sell at each price. The vertical reading tells us the minimum price at which suppliers will sell a given quantity. F. An increase in supply means that sellers are willing to accept a lower price for each quantityarrow_forwardJosh is lost in the desert. He determines that he would pay $50 for a bottle of cold Gatorade. He happens upon a grocery store, buys a bottle of cold Gatorade, and realises a consumer surplus of $47.25. What did he pay for the Gatorade? Select one: a.$50 b.$47.25 c.$97.25 d.$2.75arrow_forward
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