Consumer and Producer Surplus Quiz

What is the meaning of consumer surplus?

• The price consumers are willing to pay for a product

• The value gained by producers from selling a product above the cost of production

• The cost of producing units for consumers

• The value gained by consumers from consuming a product above the price paid

What does the demand curve represent in relation to consumer surplus?

• The price consumers are willing to pay for a product

• The value gained by consumers from consuming a product above the price paid

• The willingness of consumers to pay a higher price for a product

• The cost of production for consumers

At what point does consumer surplus disappear in the diagram?

• When price and quantity are equal

• When price is higher than the value gained by consumers

• When quantity is higher than the value gained by consumers

• When price is lower than the value gained by consumers

What is the meaning of producer surplus?

• The cost of producing units for consumers

• The value gained by producers from selling a product above the cost of production

• The value gained by consumers from consuming a product above the price paid

• The price consumers are willing to pay for a product

What does the supply curve represent in relation to producer surplus?

• The price producers are willing to sell a product for

• The value gained by consumers from consuming a product above the price paid

• The willingness of consumers to pay a higher price for a product

• The cost of production for consumers

At what point does producer surplus disappear in the diagram?

• When quantity is higher than the cost of production

• When price and quantity are equal

• When price is higher than the cost of production

• When price is lower than the cost of production

What is the marginal social benefit (MBS) in relation to consumer surplus?

• The cost of production for consumers

• The price consumers are willing to pay for a product

• The willingness of consumers to pay a higher price for a product

• The value gained by consumers from consuming a product above the price paid

What is the marginal social cost (MSC) in relation to producer surplus?

• The price producers are willing to sell a product for

• The value gained by consumers from consuming a product above the price paid

• The willingness of consumers to pay a higher price for a product

• The cost of production for consumers

What does the demand curve combine in relation to consumer surplus?

• The price consumers are willing to pay for a product

• The willingness of consumers to pay a higher price for a product

• The cost of production for consumers

• The value gained by consumers from consuming a product above the price paid

What does the supply curve show in relation to producer surplus?

• The price producers are willing to sell a product for

• The cost of production for consumers

• The willingness of consumers to pay a higher price for a product

• The value gained by consumers from consuming a product above the price paid