WorksheetsQuiz 2
Total questions: 12
Worksheet time: 7mins
Choose right definition of WILLINGNESS TO PAY.
the minimum amount that a buyer will pay for a good
the maximum amount that a buyer will pay for a good
the normal amount that a buyer will pay for a good
the budget amount that a buyer will pay for a good
Choose right answer. What is consumer surplus?
Consumer surplus=Value to buyers +Amount paid by buyers
Consumer surplus = Amount received by sellers - Cost to sellers
Consumer surplus =Amount received by sellers +Cost to sellers
Consumer surplus=Value to buyers - Amount paid by buyers
Jen values her time at $60 an hour. She spends 2 hours giving Colleen a math class. Colleen was willing to pay as much at $300 for the math class, but they negotiate a price of $200. In this transaction,
consumer surplus is $20 larger than producer surplus.
consumer surplus is $40 larger than producer surplus
producer surplus is $20 larger than consumer surplus
producer surplus is $40 larger than consumer surplus
The demand curve for cookies is downward-sloping. When the price of cookies is $2, the quantity demanded is 100. If the price rises to $3, what happens to consumer surplus?
It falls by more than $100
It rises by less than $100
It falls by less than $100
It rises by more than $100
What is the producer surplus?
Producer surplus = Amount received by sellers - Cost to sellers
Producer surplus = Amount received by sellers +Cost to sellers
Consumer surplus =Amount received by sellers + Cost to sellers
Producer surplus = Amount received by sellers - Amount paid by buyers
Find the consumer surplus triangle from the graph.
BDC
ABCD
ACD
ABD
Find the producer surplus triangle from the graph.
ABD
BCD
ACD
ABCD
An efficient allocation of resources maximizes............
consumer surplus
producer surplus
consumer surplus plus producer surplus
consumer surplus minus producer surplus
When a market is in equilibrium, the buyers are those with the ________ willingness to pay and the sellers are those with the ________ costs.
highest, highest
highest, lowest
lowest, highest
lowest, lowest
John has been working as a tutor for $300 a semester. When the university raises the price it pays tutors to $400, Jasmine enters the market and begins tutoring as well. How much does producer surplus rise as a result of this price increase?
by less than $100
between $200 and $300
between $100 and $200
by more than $300
Claude's cost is ________
800$
900$
600$
500$
Rihanna's willingness to pay is _________
100$
50$
80$
70$
