Question :
31) Lauren and Katy each bought a new bike lock : 1241540
31) Lauren and Katy each bought a new bike lock for $20. Both Lauren and Katy would have paid $25 for the lock. The total consumer surplus for Lauren and Katy taken together equaled
A) $15.
B) $10.
C) $40.
D) $20.
E) $50.
32) The price of a cowboy hat is $100. Willie is willing to pay $130, Waylon is willing to pay $100, and Merle is willing to pay $85. All of the following statements are true EXCEPT:
A) Merle’s consumer surplus is $15.
B) The sum of consumer surplus will be $30.
C) Waylon’s consumer surplus is $0.
D) Only Willie and Waylon will purchase the cowboy hat.
E) Willie’s consumer surplus is $30.
33) Mary is willing to pay $50 for a Christmas tree, John is willing to pay $45 and Jeff is willing to pay $40. The price of a tree is $40. The total consumer surplus for Mary, John and Jeff taken together is
A) $15.
B) $135.
C) $40.
D) $95.
E) $120.
34) Suppose Dan is willing to pay a maximum of $3,000 for a piano, but finds one he can buy for $2,500. Dan’s consumer surplus from this piano is
A) $5,500.
B) $3,000.
C) $2,500.
D) $500.
E) zero because he buys the piano.
35) John has a marginal benefit of $7 for 1 slice of pizza, $5 for a second slice, $3 for a third slice, $1 for a fourth slice, and $0.50 for a fifth slice. The price of pizza is $1.50 per slice. Which of the following statements is correct?
A) John will purchase 3 slices of pizza and have consumer surplus of $10.50.
B) John will purchase 4 slices of pizza and have consumer surplus of $12.00.
C) John will purchase 2 slices of pizza and have consumer surplus of $1.50.
D) John will purchase 3 slices of pizza and have consumer surplus of $4.50.
E) John will purchase 2 slices of pizza and have consumer surplus of $3.00.
36) Which of the following is an example of consumer surplus?
A) Jose buys a hamburger for $2 and tells you he would not have paid a penny more.
B) John believes the price he paid for his computer was too high.
C) Mary buys a paper tablet for $2 and finds the same good at another store for $1.50.
D) Sue would have paid $15 for a new compact disc but paid only $10.
E) Anne finds a mountain bike for which she is willing to pay a maximum of $550 and the price of the bike is $600.
37) If you are willing to pay no more than $4 for a slice of pizza and the price of a slice of pizza is $4, then
A) if you buy it, you would be cheated because you would realize no total benefit from the purchase.
B) you buy it but you get no marginal benefit from the purchase.
C) you will not buy it.
D) you buy it but you get no consumer surplus from the purchase.
E) you might buy it depending on how the slice’s marginal benefit compares to its price.
38) If a seller charges a buyer the exact price the buyer is willing to pay, then the buyer would
A) not buy the good.
B) receive the maximum consumer surplus.
C) receive no benefit from the good.
D) receive no consumer surplus from that unit of the good.
E) suffer a deadweight loss from buying the good.
39) In the figure above, for the 3,000th unit, the maximum price a consumer is willing to pay is
A) $5.
B) $10.
C) $15.
D) $0.
E) $25.
40) In the figure above, at the market price of $15, the consumer surplus equals
A) $10,000.
B) $30,000.
C) $40,000.
D) 2,000 units.
E) $20,000.
