Principles of Microeconomics
7th Edition
ISBN: 9781305156050
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 7, Problem 2CQQ
To determine
The impact of price increase on consumer surplus .
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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
surplus is the difference between the maximum price a consumer
is (or consumers are) willing to pay for a product and the actual [market] price.
A. Producer B. Consumer C. None
To 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.
Chapter 7 Solutions
Principles of Microeconomics
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- QUESTION 21 When a product becomes more fashionable, what does happen in the market? a. Total surplus increases. b. Consumer surplus decreases. c. Producer surplus decreases. d. All of the above decrease.arrow_forwardResearchers find that drinking beer has positive health effects. What impact will this have on the price of beer and producer surplus? Select one: a. they both decrease b. the equilibrium market price increases, and producer surplus decreases c. they both increase d. the equilibrium market price decreases, and producer surplus increasesarrow_forwardLesson 10 Question 7arrow_forward
- a. Draw a supply-demand graph in the market for milk. Indicate equilibrium price and equilibrium quantity. b) in the same graph, indicate a price at which there is a surplus of milk. Show the surplus of milk in your graph.arrow_forwardIf the market demand for a product shifts to the right (parallel to the first demand curve), which of the following is correct? A. producer surplus and consumer surplus both decrease. B. producer surplus increases, consumer surplus decreases C. producer surplus decreases, condumer surplus increases. D. producer surplus and consumer surplus both increasearrow_forwardPlease help earrow_forward
- Economicsarrow_forwardQ20arrow_forwardOn 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_forward
- What is the term for a situation where an individual or firm has a higher willingness to pay for a good than the market price? A. Consumer surplus B. Producer surplus C. Deadweight loss D. Indifference curvearrow_forwardMellisa buys an iphone $240 and gets consumer surplus of $160arrow_forwardGraphically, how is the consumer surplus measured? A. the area under the demand curve and above the market pr B. the area above the demand curve C. the area under the supply curve D. the area above the supply curve and below the market pric Seçimi Sıfırlaarrow_forward
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