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