Question : 31.A market has four individuals considering buying a grill for : 1379023

31.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 falls from $395 to $340, then we can say:

A. Abe’s consumer surplus increases from $5 to $60, and total consumer surplus increases from $5 to $70.

B. Abe’s consumer surplus decreases from $60 to $5, and total consumer surplus decreases from $70 to $5.

C. Collin’s consumer surplus increases from $0 to $20, and total consumer surplus increases from $5 to 70.

D. Butch’s consumer surplus decreases from $10 to $0, and total consumer surplus increases from $10 to $80.

32.Assume there are three hardware stores in the market for hammers and that all three markets produce a single, standard model hammer. House Depot is an enormous mass producer of hammers and can offer a hammer for sale for a minimum of $7. Lace Hardware is a franchise and can offer the hammer for sale for a minimum of $10. Bob’s Hardware store is a family owned and operated, independent hardware store and can offer hammers at a minimum price of $13.

Given the scenario described, if the market price of hammers was $13, then total producer surplus would be:

A. $9.

B. $30.

C. $17.

D. $7.

33.Assume there are three hardware stores in the market for hammers and that all three markets produce a single, standard model hammer. House Depot is an enormous mass producer of hammers and can offer a hammer for sale for a minimum of $7. Lace Hardware is a franchise and can offer the hammer for sale for a minimum of $10. Bob’s Hardware store is a family owned and operated, independent hardware store and can offer hammers at a minimum price of $13.

Given the scenario described, if the market price of hammers was $12, then total producer surplus would be:

A. $7.

B. $9.

C. $17.

D. $30.

34.Assume there are three hardware stores in the market for hammers and that all three markets produce a single, standard model hammer. House Depot is an enormous mass producer of hammers and can offer a hammer for sale for a minimum of $7. Lace Hardware is a franchise and can offer the hammer for sale for a minimum of $10. Bob’s Hardware store is a family owned and operated, independent hardware store and can offer hammers at a minimum price of $13.

Given the scenario described, if the market price of hammers was $10, then:

A. only House Depot would gain surplus by supplying hammers to the market.

B. only House Depot and Lace Hardware would gain surplus by supplying hammers to the market.

C. House Depot, Lace Hardware, and Bob’s Hardware would all supply hammers to the market, but Bob’s would lose surplus.

D. only House Depot and Bob’s Hardware would supply hammers to the market.

35.Assume there are three hardware stores in the market for hammers and that all three markets produce a single, standard model hammer. House Depot is an enormous mass producer of hammers and can offer a hammer for sale for a minimum of $7. Lace Hardware is a franchise and can offer the hammer for sale for a minimum of $10. Bob’s Hardware store is a family owned and operated, independent hardware store and can offer hammers at a minimum price of $13.

Given the scenario described, if the market price of hammers increased from $7 to $11:

A. producer participation in the market would increase.

B. only Bob’s Hardware would still lose surplus.

C. both Bob’s Hardware and Lace Hardware would lose surplus.

D. House Depot is the only producer that will gain surplus.

36.Assume there are three hardware stores in the market for hammers and that all three markets produce a single, standard model hammer. House Depot is an enormous mass producer of hammers and can offer a hammer for sale for a minimum of $7. Lace Hardware is a franchise and can offer the hammer for sale for a minimum of $10. Bob’s Hardware store is a family owned and operated, independent hardware store and can offer hammers at a minimum price of $13.

Given the scenario described, if the market price of hammers decreased from $15 to $13, which of the following can be said with certainty?

A. Producer participation in the market would decrease.

B. Total producer surplus would decrease.

C. Only Bob’s Hardware will experience a drop in producer surplus.

D. Producer participation in the market will not be affected.

37.Assume there are three hardware stores in the market for hammers and that all three markets produce a single, standard model hammer. House Depot is an enormous mass producer of hammers and can offer a hammer for sale for a minimum of $7. Lace Hardware is a franchise and can offer the hammer for sale for a minimum of $10. Bob’s Hardware store is a family owned and operated, independent hardware store and can offer hammers at a minimum price of $13.

Given the scenario described, if the market price of hammers decreased from $17 to $12:

A. producer participation in the market would increase.

B. producer participation in the market would decrease.

C. producer participation in the market would not be affected.

D. total producer surplus would remain unchanged.

38.Assume there are three hardware stores in the market for hammers and that all three markets produce a single, standard model hammer. House Depot is an enormous mass producer of hammers and can offer a hammer for sale for a minimum of $7. Lace Hardware is a franchise and can offer the hammer for sale for a minimum of $10. Bob’s Hardware store is a family owned and operated, independent hardware store and can offer hammers at a minimum price of $13.

Given the scenario described, if the market price of hammers decreased from $13 to $11:

A. total producer surplus would decrease from $9 to $5.

B. total producer surplus would increase from $5 to $9.

C. total producer surplus would decrease from $30 to $17.

D. total producer surplus would remain unchanged.

39.Assume there are three hardware stores in the market for hammers and that all three markets produce a single, standard model hammer. House Depot is an enormous mass producer of hammers and can offer a hammer for sale for a minimum of $7. Lace Hardware is a franchise and can offer the hammer for sale for a minimum of $10. Bob’s Hardware store is a family owned and operated, independent hardware store and can offer hammers at a minimum price of $13.

Given the scenario described, if the market price of hammers decreased from $15 to $11:

A. total producer surplus would fall by $4.

B. producer surplus for each producer falls by $4.

C. House Depot’s producer surplus falls by $4.

D. total producer surplus falls by $8.

40.Assume there are three hardware stores in the market for hammers and that all three markets produce a single, standard model hammer. House Depot is an enormous mass producer of hammers and can offer a hammer for sale for a minimum of $7. Lace Hardware is a franchise and can offer the hammer for sale for a minimum of $10. Bob’s Hardware store is a family owned and operated, independent hardware store and can offer hammers at a minimum price of $13.

Given the scenario described, if the market price of hammers decreased from $15 to $10:

A. total producer surplus falls by $5.

B. producer surplus for each producer falls by $5.

C. Bob’s Hardware no longer sells hammers.

D. total producer surplus falls by $15.