Free Printable Market Surplus

Worksheets

Market Surplus

Total questions: 21

Worksheet time: 12mins

Name

Class

Date

When quantity demand smaller than quantity supply the price will usually?

increase

decrease

remain the same

equilibrium

What is the Equilibrium Price?

Consumer surplus is the buyer's willingness to pay minus the seller's cost.

True

False

Consumer surplus decreases when the price in that market increases.

True

False

If your willingness to pay for a hamburger is $3.00 and the price is $2.00, your consumer surplus is $5.00.

True

False

Producer surplus is the area above the supply curve and below the price.

True

False

Consumer surplus is the area

below the demand curve and above the price.

above the supply curve and below the price.

above the demand curve and below the price.

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:

$0.50

$1.50

What is the equilibrium price of a book in this market?

$75

$80

$85

$90

10.

You are the manager of Fun World, a small amusement park that only charges per ride. The diagram shows the demand curve for a typical customer. At $5 per ride, how much consumer surplus does each customer get?

$15

$25

$50

11.

Now suppose you consider lowering the price per ride to $0. How much consumer surplus would each individual customer get?

$50

$75

$100

$200

12.

Now that you have lowered the price per ride to $0, what is the maximum admission fee Fun World could charge to the typical customer? (Hint = consider the amount of consumer surplus!)

$50

$75

$100

$200

13.

Consumer surplus in a market for a good exists because:

Some producers charge different prices for the good in different markets

Producers don't have the ability to set their own price

When the price of goods decrease, most consumers buy more

Some consumers are willing to pay more than the equilibrium price

14.

Refer to the graph shown. When the market price rises from P1 to P2, consumer surplus:

Increases by an amount equal to A

Decreases by an amount equal to B + C

Increases by an amount equal to B + C

Decreases by an amount equal to C

15.

Samantha loves her job so much, she would do it for free. Last year Samantha made $45,000 at her job. This year, she makes $50,000. Samantha's producer surplus for this year is:

$5,000

$50,000

$95,000

16.

What is the equilibrium quantity of books in this market?

17.

Paul goes to the clothing store to buy a new t-shirt, for which he is willing to pay $10. He finds the perfect t-shirt that costs $10. At the register he learns it is 50% off. Paul's consumer surplus is:

$10

$15

18.

monopoly has two key features, which are

barriers to entry and no close substitutes.

franchises and barriers to entry.

barriers to entry and close substitutes.

close substitutes and no barriers to entry.

19.

An example of a monopoly is

a big city restaurant.

the stock market.

the only veterinarian in an isolated farm community.

PPUM

20.

Which of the following is a characteristic of a single-price monopoly?

The firm is a price taker.

Demand is perfectly elastic.

There are many close substitutes for the firm's product.

The market price exceeds marginal revenue.

21.

What is the Equilibrium Quantity?

Reset

Market Surplus

Total questions: 21

Worksheet time: 12mins

Similar Resources on Wayground