consumer surplus

After soccer practice, Phil is willing to pay $1 for a bottle of spring water. He stops at Sheetz which is selling bottles of spring water for $1.50, so declines to purchase it. His consumer surplus is:

• $0
• $0.50
• $1
• $1.50

In the diagram, consumer surplus is represented by:

• P2, B, P3
• A, B, C
• P2, B, P0
• P1, C, A, P3

Hassan is willing to pay $20 to see the Conjuring movie for the 4th time. He finds a theater showing the movie for $5. Hassan's consumer surplus is

• $5

• $15

• $20

• $25

If you pay a price exactly equal to your willingness to pay, then

• your consumer surplus is $0

• your willingness to pay is less than your consumer surplus

• your consumer surplus is negative

• you place little value on the good

The maximum price a consumer is willing to pay for a product and the actual price that they do pay

• Consumer surplus
• Producer surplus
• Deadweight loss
• Allocative Efficiency

Producer Surplus is the area

• Below the price and above the supply curve

• Under the supply curve

• Between the supply and demand curves

• Under the demand curve, and above the price

The area below a demand curve and above the price measures

• Producer surplus

• Willingness to pay

• Consumer surplus

• Excess supply

Yaz produces nails at a cost of $200 per ton. If he sells nails for $350 per ton, his producer surplus per ton is

• $200

• $350

• $150

• $550

Which graph correctly shows producer surplus shaded in when a market is in equilibrium?

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Reductions of combined consumer and producer surplus

• Deadweight loss
• Elasticity
• Tax incidence
• Surplus