12.) Consumer surplus is equal to minus a.) Price, willingness to pay b.) Price, cost to produce c.) Willingness to pay, price d.) Cost to produce, price 13.) Producer surplus is equal to minus a.) Price, willingness to pay b.) Price, cost to produce c.) Willingness to pay, price d.) Cost to produce, price 14.) Suppose that Ty, George, Joe, and Ted are potential buyers of a rare Honus Wagner baseball card. Each will buy either one card or zero cards. Ty's benefit from owning the card is $500,000; George's benefit is $400,000; Joe's benefit is $300,000; and Ted's benefit is $200,000. Who is the marginal consumer if 4 Honus Wagner cards are sold? а.) Ту b.) George c.) Joe d.) Ted 15.) Suppose that Jacques, Julia, Cat, and Guy are potential suppliers of catering services for weddings. Each can cater at most one wedding. Jacques' cost of catering a wedding is $50,000; Julia's cost is $40,000; Cat's cost is $30,000; and Guy's cost is $20,000. If 2 weddings are catered, who will be the marginal producer? a.) Jacuges b.) Julia с.) Cat d.) Guy 16.) Suppose that a $10 tax in the market for beer causes the quantity of beer sold to decrease by 20. If consumer tax incidence is $5 and producer tax incidence is $5, what is the value of the deadweight loss caused by the tax? a.) $25 b.) $50 c.) $75 d.) $100
12.) Consumer surplus is equal to minus a.) Price, willingness to pay b.) Price, cost to produce c.) Willingness to pay, price d.) Cost to produce, price 13.) Producer surplus is equal to minus a.) Price, willingness to pay b.) Price, cost to produce c.) Willingness to pay, price d.) Cost to produce, price 14.) Suppose that Ty, George, Joe, and Ted are potential buyers of a rare Honus Wagner baseball card. Each will buy either one card or zero cards. Ty's benefit from owning the card is $500,000; George's benefit is $400,000; Joe's benefit is $300,000; and Ted's benefit is $200,000. Who is the marginal consumer if 4 Honus Wagner cards are sold? а.) Ту b.) George c.) Joe d.) Ted 15.) Suppose that Jacques, Julia, Cat, and Guy are potential suppliers of catering services for weddings. Each can cater at most one wedding. Jacques' cost of catering a wedding is $50,000; Julia's cost is $40,000; Cat's cost is $30,000; and Guy's cost is $20,000. If 2 weddings are catered, who will be the marginal producer? a.) Jacuges b.) Julia с.) Cat d.) Guy 16.) Suppose that a $10 tax in the market for beer causes the quantity of beer sold to decrease by 20. If consumer tax incidence is $5 and producer tax incidence is $5, what is the value of the deadweight loss caused by the tax? a.) $25 b.) $50 c.) $75 d.) $100
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:12.) Consumer surplus is equal to
minus
a.) Price, willingness to pay
b.) Price, cost to produce
c.) Willingness to pay, price
d.) Cost to produce, price
13.) Producer surplus is equal to
minus
a.) Price, willingness to pay
b.) Price, cost to produce
c.) Willingness to pay, price
d.) Cost to produce, price
14.) Suppose that Ty, George, Joe, and Ted are potential buyers of a rare Honus Wagner baseball
card. Each will buy either one card or zero cards. Ty's benefit from owning the card is
$500,000; George's benefit is $400,000; Joe's benefit is $300,000; and Ted's benefit is $200,000.
Who is the marginal consumer if 4 Honus Wagner cards are sold?
а.) Ту
b.) George
с.) Joe
d.) Ted
15.) Suppose that Jacques, Julia, Cat, and Guy are potential suppliers of catering services for
weddings. Each can cater at most one wedding. Jacques' cost of catering a wedding is $50,000;
Julia's cost is $40,000; Cat's cost is $30,000; and Guy's cost is $20,000. If 2 weddings are
catered, who will be the marginal producer?
a.) Jacuges
b.) Julia
с.) Cat
d.) Guy
16.) Suppose that a $10 tax in the market for beer causes the quantity of beer sold to decrease by 20.
If consumer tax incidence is $5 and producer tax incidence is $5, what is the value of the
deadweight loss caused by the tax?
a.) $25
b.) $50
c.) $75
d.) $100
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