Question :
111.Whichofthefollowingwillcauseanincreaseinproducersurplus?
a.the imposition ofa bindingprice ceilingin themarket
b.buyersexpectthepriceofthegoodtobelowernextmonth
c.thepri : 1262510
111.Whichofthefollowingwillcauseanincreaseinproducersurplus?
a.the imposition ofa bindingprice ceilingin themarket
b.buyersexpectthepriceofthegoodtobelowernextmonth
c.thepriceofasubstituteincreases
d.incomeincreasesandbuyersconsiderthegoodtobeinferior
112.Ifthedemandforleatherdecreases,producersurplusintheleathermarket
a.increases.
b.decreases.
c.remainsthesame.
d.mayincrease,decrease,orremainthesame.
113.Ifthedemandforlightbulbsincreases,producersurplusinthemarketforlightbulbs
a.increases.
b.decreases.
c.remainsthesame.
d.mayincrease,decrease,orremainthesame.
114.TheSurgeonGeneralannouncesthateatingchocolateincreasestoothdecay.Asaresult,theequilibriumpriceofchocolate
a.increases,andproducersurplusincreases.
b.increases,andproducersurplusdecreases.
c.decreases,andproducersurplusincreases.
d.decreases,andproducersurplusdecreases.
115.Supposeconsumerincomeincreases.Ifgrassseedisanormalgood,theequilibriumpriceofgrassseedwill
a.decrease,andproducersurplusintheindustrywilldecrease.
b.increase,andproducersurplusintheindustrywillincrease.
c.decrease,andproducersurplusintheindustrywillincrease.
d.increase,andproducersurplusintheindustrywilldecrease.
116.Whichofthefollowingstatementsisnotcorrect?
a.Asellerwouldbeeagertosellherproductatapricehigherthanhercost.
b.Asellerwouldrefusetosellherproductatapricelowerthanhercost.
c.Asellerwouldbeindifferentaboutsellingherproductatapriceequaltohercost.
d.Sincesellerscannotsetthepricefortheirproduct,theymustbewillingtoselltheirproductatanyprice.
117.Whichofthefollowingeventswouldincreaseproducersurplus?
a.Sellers’costsstaythesameandthepriceofthegoodincreases.
b.Sellers’costsincreaseandthepriceofthegoodstaysthesame.
c.Sellers’costsincreaseandthepriceofthegooddecreases.
d.Alloftheabovearecorrect.
118.Whichofthefollowingwillcauseadecreaseinproducersurplus?
a.the imposition ofa bindingprice ceilingin themarket
b.anincreaseinthenumberofbuyersofthegood
c.incomeincreasesandbuyersconsiderthegoodtobenormal
d.thepriceofacomplementdecreases
119.ABCCompanyincursacostof50centstoproduceadozeneggs,whileXYZCompanyincursacostof70centstoproduceadozeneggs.Whichofthefollowingpriceincreaseswouldcausebothcompaniestoexperienceanincreaseinproducersurplus?
a.Thepriceofadozeneggsincreasesfrom40centsto55cents.
b.Thepriceofadozeneggsincreasesfrom55centsto70cents.
c.Thepriceofadozeneggsincreasesfrom55centsto75cents.
d.Allofthesepriceincreaseswouldcausebothcompaniestoexperiencealossinproducersurplus.
120.Thewelfareofsellersismeasuredby
a.consumersurplus.
b.producersurplus.
c.totalsurplus.
d.price.
121.TheSurgeonGeneralannouncesthateatingapplespromoteshealthyteeth.Asaresult,theequilibriumpriceofapples
a.increases,andproducersurplusincreases.
b.increases,andproducersurplusdecreases.
c.decreases,andproducersurplusincreases.
d.decreases,andproducersurplusdecreases.
122.Whichofthefollowingwillcauseadecreaseinproducersurplus?
a.theimpositionofanonbindingpriceceilinginthemarket
b.buyersexpectthepriceofagoodtobehighernextmonth
c.thepriceofasubstituteincreases
d.incomeincreasesandbuyersconsiderthegoodtobeinferior
123.Whichofthefollowingwillcausenochangeinproducersurplus?
a.theimpositionofanonbindingpriceceilinginthemarket
b.buyersexpectthepriceofagoodtobehighernextmonth
c.thepriceofasubstituteincreases
d.incomeincreasesandbuyersconsiderthegoodtobeinferior
124.Supposethatthemarketpriceforpizzasincreases.Theincreaseinproducersurpluscomesfromthebenefitofthehigherpricesto
a.onlyexistingsellerswhonowreceivehigherpricesonthepizzastheywerealreadyselling.
b.onlynewsellerswhoenterthemarketbecauseofthehigherprices.
c.bothexistingsellerswhonowreceivehigherpricesonthepizzastheywerealreadysellingandnewsellerswhoenterthemarketbecauseofthehigherprices.
d.Producersurplusdoesnotincrease;itdecreases.