Figure 7-5.On the graph below, Q represents the quantity of the good and P represents the good’s price.
Refer to Figure 7-5. If the price of the good is $14, then producer surplus is
| a. | $17. |
| b. | $22. |
| c. | $25. |
| d. | $28. |
Figure 7-9
Refer to Figure 7-9. If the price decreases from $22 to $16, consumer surplus increases by
| a. | $120. |
| b. | $360. |
| c. | $480. |
| d. | $600. |
Refer to Figure 7-9. IF 40 units of the good are being bought and sold, then
- The marginal cost to seller is equal to the marginal value to buyers
- The marginal value to buyers is greater than the marginal cost to seller
- The marginal cost to sellers is greater than the marginal value to buyers
- Producer surplus would be greater than consumer surplus.
Figure 7-20
|
|
48
44 A
40
36
32 F G
|
28
24 H
20 B
16
12
8 C
4
1 2 3 4 5 6 7 8 9 10 11 Quantity
Refer to Figure 7-20. At Equilibrium, total surplus is
- $36
- $72
- $108
- $144
Figure 8-2
The vertical distance between points A and B represents a tax in the market.
Refer to Figure 8-2
The loss of consumer surplus as a result of the tax is
- $1.50 B. $3 C. $4.50 D. $6
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