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Exam 7: Consumers, producers, and the Efficiency of Markets

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Question 31

True/False

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Free markets allocate (1) the supply of goods to the buyers who value them most highly and (2) the demand for goods to the sellers who can produce them at the least cost.

A) True
B) False

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Question 32

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What name is given to the study of how the allocation of resources affects economic well-being

A) consumer economics
B) managerial economics
C) welfare economics
D) supply-side economics

E) All of the above
F) None of the above

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Question 33

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Table 7-3 -Refer to Table 7-3.If the price is $1000,what is Jackson's producer surplus

Suri is willing to pay $85 for a pair of shoes for her graduation banquet.She finds a pair at her favourite outlet shoe store for $62.What is Suri's consumer surplus

Market demand is given as Q_D = 60 - 3P.Market supply is given as Q_S = 3P.In a perfectly competitive equilibrium,what will be the value of consumer surplus

Market demand is given as Q_D = 150 - 0.5P.Market supply is given as Q_S = 2P.In a perfectly competitive equilibrium,what will be the value of producer surplus

Determine the amount of consumer surplus generated in each of the following situations. a.Mary goes to the drugstore,where she is willing to pay up to $10 for a bottle of nail polish.She picks out one that she likes with a price of $9.99.When she is paying for it,she learns that the product has been discounted by 50 percent. b.Mike goes to the used book store hoping to find a paperback copy of the Hunger Games for up to $10.The store has one copy selling for $10,which he purchases. c.After dance rehearsal,Julie is willing to pay $2 for a bottle of mineral water.The corner store sells mineral water for $2.25 per bottle,so she declines to purchase it.

Suppose Connor is willing to pay $400 for a new suit for his graduation,but is able to buy the suit for $350.What is his consumer surplus

According to many economists,what do government restrictions of ticket scalping NOT do

What do many economists believe that restrictions against ticket scalping will NOT cause

Denise values a stainless steel dishwasher for her new house at $700.The actual price of the dishwasher is $850.What will Denise do

Tammy loves doughnuts.The table shown reflects the value Tammy places on each doughnut she eats: a.Use this information to construct Tammy's demand curve for doughnuts. b.If the price of doughnuts is $0.20, how many doughnuts will Tammy buy c.Show Tammy's consumer surplus on your graph.How much consumer surplus would she have at a price of $0.20 d.If the price of doughnuts rose to $0.40, how many doughnuts would she purchase now? What would happen to Tammy's consumer surplus? Show this change on your graph.

What is the sum of out-of-pocket expenses plus the value of the seller's own resources used in production

Consumer surplus measures the benefit to buyers of participating in a market.

What does total surplus in a market equal

Amy buys a new horse for $1500.She receives consumer surplus of $100 on her purchase.What is her willingness to pay

For any given quantity,the price on a demand curve represents the marginal buyer's willingness to pay.

Nathan buys a new sound system for his dorm room for $500.He receives consumer surplus of $400 from the purchase.At what amount does Nathan value his sound system

Figure 7-3 -Refer to Figure 7-3.Which area represents the increase in producer surplus when the price rises from P₁ to P₂ due to new producers entering the market

Joel has a 1966 Mustang,which he sells to Susie,an avid car collector.Susie is pleased since she paid $8000 for the car but would have been willing to pay $11,000 for the car.Susie's consumer surplus is $2000.