Econ Unit 4 FA Dummy 4, 2025-26

A study shows that increasing branding efforts by firms results in stronger:

• Price controls

• Product Differentiation

• Supply chain efficiency

• Regulatory compliance

Imagine a smartphone company redesigns its device’s camera and software to make it stand out from others, demonstrating:

• Market saturation

• Product Differentiation

• Price collusion

• Natural monopoly

If two coffee shops in the same neighborhood use different brewing methods and unique flavors to attract customers, this is an example of:

• Price fixing

• Product Differentiation

• Market failure

• Excess Capacity

When a clothing brand highlights eco-friendly materials and exclusive designs to appeal to customers, it is practicing:

• Product Differentiation

• Marginal cost pricing

• Oligopoly behavior

• Price discrimination

What term describes the difference between the highest price a consumer is willing to pay and the price they actually pay?

• Producer Surplus from sales

• Consumer Surplus gained

• Market Equilibrium point

• Price Elasticity measure

Consumer Surplus is best defined as:

• Total revenue received by sellers

• Difference between max price willing to pay and price paid

• Cost consumers pay for goods bought

• Change in demand caused by price

Which concept measures the benefit consumers receive when they pay less than what they planned?

• Consumer Surplus gained

• Producer Surplus earned

• Deadweight Loss caused

• Opportunity Cost spent

The amount a consumer gains by paying less than their maximum willingness to pay is called:

• Consumer Surplus gained

• Price Discrimination practiced

• Marginal Utility received

• Supply Surplus earned

A study finds that when ticket prices drop 20%, the average consumer surplus:

• Decreases as fewer tickets sell

• Increases as consumers save money

• Stays the same regardless

• Is eliminated by sellers

If a buyer will pay $50 but buys for $30, which illustrates this?

• Producer surplus of $20

• Consumer surplus of $20

• Deadweight loss occurs

• Price elasticity zero