Question : 21) Jake just bought a new hockey stick. When he : 1226484

21) Jake just bought a new hockey stick. When he was leaving the shop, he thought that he such a great deal and would have paid $50 more dollars for the stick. Jake received

A) producer surplus.

B) equilibrium.

C) marginal cost.

D) total surplus.

E) consumer surplus.

22) Consumer surplus exists when

A) it costs less to produce goods than buyers must pay for them.

B) consumers value the good more highly than what they must pay to buy it.

C) taxes on goods are less than the appropriate amount.

D) the marginal benefit of the good is always equal to or less than the price of the good.

E) the price of the good is greater than the marginal cost of producing a unit of the good.

23) The consumer acquires a consumer surplus on a good if the marginal benefit is

A) equal to the price.

B) greater than the price.

C) less than the price.

D) zero.

E) less than the marginal cost.

24) Consumer surplus is equal to

A) marginal benefit minus price summed over the quantity consumed.

B) price minus marginal benefit summed over the quantity consumed.

C) marginal benefit summed over the quantity consumed.

D) price multiplied by the quantity consumed.

E) marginal benefit plus price summed over the quantity consumed.

25) Which of the following statements is correct?

A) Consumer surplus equals the price paid for a good.

B) The consumer surplus from a good is always larger than the total benefit from the good.

C) An increase in price decreases consumer surplus.

D) An increase in price has no effect on consumer surplus.

E) The consumer surplus from a good or service must always equal producer surplus.

26) In a figure, the consumer surplus is equal to the area ________ the ________ curve and ________ the price.

A) above; demand; above

B) below; supply; below

C) below; demand; below

D) below; demand; above

E) above; supply; below

27) Consumer surplus is the area

A) below the demand curve and above the market price.

B) below the supply curve and above the market price.

C) above the demand curve and below the market price.

D) above the supply curve and below the market price.

E) below the demand curve and above the supply curve.

28) When the market price rises, the consumers’ consumer surplus ________. When the market price falls, the consumers’ consumer surplus ________.

A) decreases; increases

B) decreases; decreases

C) increases; increases

D) increases; decreases

E) does not change; increases

29) In the summer of 2008, the price of gasoline increased greatly. If the demand curve for gasoline did not shift, which of the following occurred?

A) Drivers received no consumer surplus after the price increase.

B) Consumer surplus increased if drivers drove less.

C) Consumer surplus decreased.

D) If consumers drove the same amount, they received less total benefit.

E) Both the marginal benefit from each gallon of gasoline and the consumer surplus from each gallon of gasoline decreased.

30) Lauren and Katy each bought a new bike lock for $20. Both Lauren and Katy would have paid $25 for the lock. Katy’s consumer surplus equaled

A) $10.

B) $40.

C) $5.

D) $20.

E) $50.