Question : 21.When someone’s willingness to pay the same as the actual : 1379022

21.When someone’s willingness to pay is the same as the actual price paid for an item:

A. the individual will not purchase the item.

B. the individual’s surplus is zero.

C. surplus cannot be maximized.

D. All of these are true.

22.When Bob’s willingness to pay for a cup of coffee is $1, and the price of a cup of coffee is $1:

A. Bob is indifferent about purchasing the coffee.

B. Bob will get no surplus by purchasing the coffee.

C. Bob will get the same surplus whether he purchases the coffee or not.

D. All of these are true.

23.Surplus is:

A. a better measure of the value that buyers and sellers get from participating in a market than price itself.

B. maximized for individuals whose reservation price equals the market price.

C. negative for those who do not participate in a market.

D. All of these are true.

24.A market has four individuals considering buying a grill for his backyard. Further assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.

If the market price of grills is $300, given the scenario described, the total consumer surplus would be:

A. $170.

B. $1,070.

C. $200.

D. None of these is true.

25.A market has four individuals considering buying a grill for his backyard. Further assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.

Given the scenario described, if the market price of grills is $320, who participates in the market?

A. Only Abe, Butch, and Collin participate.

B. Only Collin and Daniel participate.

C. Only Abe and Butch participate.

D. Only Daniel participates.

26.A market has four individuals considering buying a grill for his backyard. Further assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.

If the market price of grills increases from $300 to $320, given the scenario described:

A. Collin would drop out of the market.

B. Collin’s surplus would decrease the least.

C. Collin is the only consumer who would be affected in terms of surplus.

D. None of these is true.

27.A market has four individuals considering buying a grill for his backyard. Further assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.

If the market price of grills increases from $310 to $350, given the scenario described:

A. total consumer surplus would rise.

B. total consumer surplus would fall.

C. Collin and Butch would experience a decrease in consumer surplus, but Abe’s consumer surplus would rise.

D. Collin would experience a decrease in consumer surplus, but Abe and Butch would experience a rise in consumer surplus.

28.A market has four individuals considering buying a grill for his backyard. Further assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.

If the market price of grills is $350, given the scenario described, total consumer surplus would be:

A. $50.

B. $750.

C. $400.

D. $870.

29.A market has four individuals considering buying a grill for his backyard. Further assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.

If the market price of grills is $320, given the scenario described, Abe’s consumer surplus would be:

A. $400.

B. $350.

C. $320.

D. $80.

30.A market has four individuals considering buying a grill for his backyard. Further assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.

If the market price of grills falls from $375 to $330, given the scenario described, which of the following can be said?

A. Butch will join the market, but receive no consumer surplus.

B. Butch and Collin will join the market, and together will receive$30 in consumer surplus.

C. Abe will experience a decrease in consumer surplus of $45.

D. Abe will experience an increase in consumer surplus of $45.