Question :
11) Which of the following statements best describes the concept : 1245087
11) Which of the following statements best describes the concept of consumer surplus?
A) “Safeway was having a sale on Dreyer’s ice cream so I bought 3 quarts.”
B) “I was all ready to pay $300 for a new leather jacket that I had seen in Macy’s but I ended up paying only $180 for the same jacket.”
C) “I paid $130 for a printer last week. This week the same store is selling the same printer for $110.”
D) “I sold my Blu-ray copy of Ben-Hur for $18 at a garage sale even though I was willing to sell it for $10.”
12) Each point on a ________ curve shows the willingness of consumers to purchase a product at different prices.
A) demand
B) supply
C) production possibilities
D) marginal cost
Table 4-1
Consumer
Willingness to Pay
Tom
$40
Dick
30
Harriet
25
13) Refer to Table 4-1. The table above lists the highest prices three consumers, Tom, Dick and Harriet, are willing to pay for a short-sleeved polo shirt. If the price of one of the shirts is $28 dollars
A) Tom will buy two shirts, Dick will buy one shirt and Harriet will buy no shirts.
B) Tom will receive $12 of consumer surplus from buying one shirt.
C) Tom and Dick receive a total of $70 of consumer surplus from buying one shirt each. Harriet will buy no shirts.
D) Harriet will receive $25 of consumer surplus since she will buy no shirts.
14) Refer to Table 4-1. The table above lists the highest prices three consumers, Tom, Dick and Harriet, are willing to pay for a short-sleeved polo shirt. If the price of the shirts falls from $28 to $20
A) consumer surplus increases from $14 to $35.
B) Tom will buy two shirts; Dick and Harriet will each buy one shirt.
C) consumer surplus will increase from $70 to $95.
D) Harriet will receive more consumer surplus than Tom or Dick.
Table 4-2
Consumer
Willingness to Pay
Anya
$24
Basil
20
Celeste
15
Dralon
12
Esther
7
15) Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one of the tickets is $18
A) Anya and Basil will each buy two tickets.
B) Basil will receive $2 of consumer surplus from buying one ticket.
C) Anya and Basil receive a total of $26 of consumer surplus from buying one ticket each. No one else will buy a ticket.
D) Celeste, Dralon, and Esther will receive a total of $34 of consumer surplus since they will buy no tickets.
16) Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one of the tickets is $10
A) everyone will buy a ticket except for Esther.
B) only Anya and Basil will buy tickets.
C) Celeste’s consumer surplus is $25.
D) the total consumer surplus from the purchase of tickets will be $61.
17) Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one ticket is $25
A) everyone will buy a ticket.
B) consumer surplus will be maximized.
C) Anya’s consumer surplus is $1.
D) no one will buy a ticket.
18) Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one ticket rises from $10 to $19
A) only three tickets will be sold.
B) consumer surplus decreases from $31 to $6.
C) consumer surplus increases from $44 to $71.
D) no one will buy a ticket.
19) Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one ticket falls from $25 to $10
A) only three tickets will be sold.
B) consumer surplus decreases from $24 to $12.
C) consumer surplus increases from $0 to $31.
D) everyone will buy a ticket.
20) Marginal cost is
A) the total cost of producing one unit of a good or service.
B) the average cost of producing a good or service.
C) the difference between the lowest price a firm would have been willing to accept and the price it actually receives.
D) the additional cost to a firm of producing one more unit of a good or service.
Table 4-3
The Waco Kid’s Cowboy Hats
Marginal Cost
(dollars)
1st hat
$24
2nd hat
30
3rd hat
38
4th hat
46
