Y11 Economics - Market Efficiency

Consumer surplus is

• the difference between a buyer's maximum price and their minimum price.

• the difference between a buyer's maximum price and the actual price.

• the difference between a buyer's minimum price and the actual price.

• the difference between total benefits and marginal benefits.

A consumers' total benefit from consuming a good is equal to the

• total amount spent on the good.

• consumer surplus on the quantity purchased.

• consumer surplus minus the total spent on the good.

• consumer surplus plus the total amount spent on the good.

James pays $10 for a pizza but he was willing to pay $12. James' consumer surplus is

• $10

• $12

• $2

• -$2

Craig valued a ticket to the football game at $60. The actual price was$75. Craig's consumer surplus was

• $15

• -$15

• $60

• Zero

When Lauren purchased a fluffy kitten she received a consumer surplus of $100. If Lauren's maximum price was $400, she must have paid

• $100

• $300

• $400

• $500

Steven's demand for Taylor Swift concert tickets is shown below.

Price ($)     Qty Demanded

400             1

300             2

200             3

100             4

What is Steven's consumer surplus if he buys three tickets for $200 each?

• $200

• $300

• $400

• $600

Brittany is willing to sell her cupcakes for $4. She actually receives $6. Her producer surplus is

• $2

• $4

• $6

• $10

If it costs $2 per cone to make 10 ice cream cones and you sell 10 cones for $4 each, then your producer surplus on the 10 cones is equal to

• $2

• $10

• $20

• $40

Julie received a producer surplus of $550 when she sold her prize winning portrait for $1,000. The cost of the painting is

• $450

• $550

• $1000

• $1550

Producer surplus is the difference between the

• willingness to pay for the good and the marginal cost of producing the good.

• marginal benefit of the good and the marginal cost of the good.

• market price and the willingness to pay for the good.

• market price and the marginal cost of producing the good.