Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 6, Problem 4MCQ
To determine
To select:
The option which correctly explains when the market for a good can be considered as efficient.
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Students have asked these similar questions
Economics
Question 1
Suppose the demand and supply for eggs in a small economy are given by:
QD=100-20P
Qs=-20+40P
Where, Qo and Qs are in thousand dozen of eggs and P is the price per dozen of eggs.
a.
b.
Find the total surplus if only 50 thousand dozen eggs are produced and
sold. Indicate the area of total surplus in a figure.
Find the total surplus if 80 thousand dozen eggs are produced and sold.
Indicate the area of total surplus in a figure.
Suppose eggs can be imported to the domestic egg market and domestic consumers can
buy any amount at $1.5 per dozen.
d.
Comparing to part a, compute the change in consumer surplus.
e.
For the change in consumer surplus in d, compute the change in consumer
surplus for new consumers and the change in consumer surplus to initial consumers.
Find the consumer surplus, producer surplus and total surplus at the
market equilibrium. Draw a well-labeled figure to illustrate the surpluses.
C.
If the demand curve for chocolate bars is downward sloping and the supply of it decreases, there is __ in consumer surplus; a. an increase, b. no change, c. it's impossible to tell what will happen to consumer surplus, d. a decrease
Chapter 6 Solutions
Foundations of Economics (8th Edition)
Ch. 6 - Prob. 1SPPACh. 6 - Prob. 2SPPACh. 6 - Prob. 3SPPACh. 6 - Prob. 4SPPACh. 6 - Prob. 5SPPACh. 6 - Prob. 6SPPACh. 6 - Prob. 7SPPACh. 6 - Prob. 8SPPACh. 6 - Prob. 9SPPACh. 6 - Prob. 10SPPA
Ch. 6 - Prob. 11SPPACh. 6 - Prob. 12SPPACh. 6 - Prob. 1IAPACh. 6 - Prob. 2IAPACh. 6 - Prob. 3IAPACh. 6 - Prob. 4IAPACh. 6 - Prob. 5IAPACh. 6 - Prob. 6IAPACh. 6 - Prob. 7IAPACh. 6 - Prob. 8IAPACh. 6 - Prob. 9IAPACh. 6 - Prob. 1MCQCh. 6 - Prob. 2MCQCh. 6 - Prob. 3MCQCh. 6 - Prob. 4MCQCh. 6 - Prob. 5MCQCh. 6 - Prob. 6MCQCh. 6 - Prob. 7MCQ
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Similar questions
- Mellisa buys an iphone $240 and gets consumer surplus of $160arrow_forwardTo economists, the term "consumer surplus" means: Select one: a. the difference between the price a consumer is willing to pay and the price that suppliers are willing to accept. b. the excess money consumers have left over after purchasing goods. c. the consumer's net benefit from trading. d. the difference between the price a consumer is able to pay and willing to pay.arrow_forwardThe demand curve for cookies is downward-sloping. When the price of cookies is $2, the quantity demanded is 100. If the price rises to $3, what happens to consumer surplus? a. It falls by less than $100. b. It falls by more than $100. c. It rises by less than $100. d. It rises by more than $100.arrow_forward
- The area under the demand curve up to unit Q 1 represents the total ____ of Q 1 to society. A. surplus B. gain C. cost D. benefitarrow_forwardThe total surplus (consumer surplus plus producer surplus) is greatest when which of the following occurs? a.Producer surplus is maximized. b.Consumer surplus is maximized. c.All of these are correct d.The market is at equilibrium.arrow_forwardQuestion 1. Melissa buys an iPhone for $120 and gets consumer surplus of $80. a) What is her willingness to pay? b) If she had bought the iPhone on sale for $90, what would her consumer surplus have been?arrow_forward
- When the market price is set above the equilibrium price: A.consumer surplus is decreased. B.All of these are true. C.efficiency does not occur. D.total surplus is not maximized.arrow_forwardWhat is the term used to describe the situation where resources are allocated in a way that maximizes total surplus? A. Pareto efficiency B. Market equilibrium C. Social welfare D. Deadweight lossarrow_forwardOnly typed answerarrow_forward
- On a graph, consumer surplus is represented by the area a. between the demand and supply curves. b. below the demand curve and above price. c. below the price and above the supply curve. d. below the demand curve and to the right of equilibrium price.arrow_forwardOnly typed answer and please answer correctlyarrow_forwardThe table below represents the market for DVDS. The value of consumer surplus is $__________milon (Enter your reaponse as an integer)arrow_forward
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