Question : 11) Which of the following statements best describes the concept : 1388165

 

 

11) Which of the following statements best describes the concept of consumer surplus?

A) “I paid $89 for a microwave oven last week. This week the same store is selling the same microwave oven for $69.”

B) “I sold my hard copy of Harry Potter and the Half-Blood Prince to a used book store for $10 even though I was willing to sell it for $5.”

C) “Target was having a sale on tube socks so I bought 5 pairs.”

D) “I was going to pay $200 for new sunglasses that I had seen at the Oakley store but I ended up paying only $140 for the same sunglasses.”

 

12) Each point on a demand curve shows

A) the willingness of consumers to purchase a product at different prices.

B) the consumer surplus received from purchasing a given quantity of a product.

C) the economic surplus received from purchasing a given quantity of a product.

D) the legally determined maximum price that sellers may charge for a given quantity of a product.

 

 

Table 4-1

 

Consumer

Willingness to Pay

Curly

$50

Moe

  30

Larry

  15

 

13) Refer to Table 4-1.  The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne.  If the price of one of the bottles is $24 dollars

A) Curly will buy two bottles, Moe will buy one bottle and Larry will buy no bottles.

B) Curly will receive $26 of consumer surplus from buying one bottle.

C) Curly and Moe receive a total of $80 of consumer surplus from buying one bottle each.  Larry will buy no bottles.

D) Larry will receive $15 of consumer surplus since he will buy no bottles.

 

 

14) Refer to Table 4-1.  The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne.  If the price of one of the bottles is $27 dollars, total consumer surplus will be

A) $0.

B) $14.

C) $26.

D) $53.

 

15) Refer to Table 4-1.  The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne.  If the price of one of the bottles is $95 dollars, total consumer surplus will be

A) $0.

B) $35.

C) $80.

D) $95.

 

 

16) Refer to Table 4-1.  The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne.  If the price of the champagne falls from $24 to $14

A) consumer surplus increases from $32 to $53.

B) Curly will buy four bottles; Moe will buy two bottles, and Larry will buy one bottle.  

C) consumer surplus will increase from $80 to $95.

D) Larry and Moe will receive more consumer surplus than Curly.

 

 

Table 4-2

 

Consumer

Willingness to Pay

Violet

$48

Walter

  40

Xavier

  30

Yolanda

  24

Zachary

  14

 

 

17) Refer to Table 4-2.  The table above lists the highest prices five consumers are willing to pay for a concert ticket.  If the price of one of the tickets is $36

A) Violet and Walter will each buy two tickets.

B) Walter will receive $4 of consumer surplus from buying one ticket.

C) Violet and Walter receive a total of $52 of consumer surplus from buying one ticket each. No one else will buy a ticket.

D) Xavier, Yolanda, and Zachary will receive a total of $68 of consumer surplus since they will buy no tickets.

 

18) Refer to Table 4-2.  The table above lists the highest prices five consumers are willing to pay for a concert ticket.  If the price of one of the tickets is $20

A) everyone will buy a ticket except for Zachary.

B) only Violet and Walter will buy tickets.

C) Xavier’s consumer surplus is $50.

D) the total consumer surplus from the purchase of tickets will be $122.

 

 

19) Refer to Table 4-2.  The table above lists the highest prices five consumers are willing to pay for a concert ticket.  If the price of one ticket is $50

A) everyone will buy a ticket.

B) consumer surplus will be maximized.

C) Violet’s consumer surplus is $2.

D) no one will buy a ticket.

 

 

20) Refer to Table 4-2.  The table above lists the highest prices five consumers are willing to pay for a concert ticket.  If the price of one ticket rises from $20 to $38

A) only three tickets will be sold.

B) consumer surplus decreases from $62 to $12.

C) consumer surplus increases from $88 to $142.

D) no one will buy a ticket.