1 A consumer s willingness to pay reflects the maximum price at which he or she would buy the good or service True Answer Correct the minimum price at which he or she would buy the good or service Incorrect the cost of producing the good or service Incorrect the equilibrium price of the good or service Incorrect A consumer s willingness to pay depends on the cost of producing the good or service True Answer Correct the benefit that he or she expects to receive from consuming the good or service Incorrect the size of the shortage of the good or service Incorrect the size of the surplus of the good or service Incorrect Reference Ref 4 1 Table Willingness to Pay for Basketball Sneakers If the price of basketball sneakers is 145 which player will purchase sneakers Jamichael True Answer Correct Corey Incorrect Rudy Incorrect Ray Incorrect Reference Ref 4 1 2 3 4 Table Willingness to Pay for Basketball Sneakers If the price of basketball sneakers is 125 which players will purchase sneakers Jamichael and Javon Incorrect Jamichael and Corey True Answer Correct Jamichael Corey and Rudy Incorrect Jamichael Corey Rudy and Ray Incorrect Reference Ref 4 1 Table Willingness to Pay for Basketball Sneakers If the price of basketball sneakers is 180 how many pairs will be purchased 0 True Answer Correct 1 Incorrect 2 Incorrect 3 Incorrect 5 6 Reference Ref 4 1 Table Willingness to Pay for Basketball Sneakers If the price of basketball sneakers is 130 how many pairs will be purchased 0 Incorrect 1 Incorrect 2 True Answer Correct 3 Incorrect 7 8 9 10 Reference Ref 4 1 Table Willingness to Pay for Basketball Sneakers If the price of basketball sneakers is 100 how many pairs will be purchased 1 Incorrect 2 Incorrect 3 Incorrect 4 True Answer Correct Reference Ref 4 1 Table Willingness to Pay for Basketball Sneakers If the price of basketball sneakers is 60 how many pairs will be purchased 5 True Answer Correct 4 Incorrect 3 Incorrect 2 Incorrect The consumers willingness to pay for a good is used to derive the for that good producer surplus Incorrect cost of production Incorrect supply curve Incorrect demand curve True Answer Correct The total consumer surplus for good X can be calculated in all except one of the following ways Which is the exception 11 12 the sum of the individual consumer surpluses for all buyers of X Incorrect the area below the demand curve for X and above the price of X Incorrect the area bounded by the demand curve for X and the two axes True Answer Correct the sum for all buyers of X of the difference between what each buyer is willing to pay for X and the amount actually paid Incorrect Reference Ref 4 2 Table Consumer Surplus and Phantom Tickets Look at the table Consumer Surplus and Phantom Tickets If the price of a ticket to see Phantom of the Opera is 50 then Robert s consumer surplus is 60 Incorrect 50 Incorrect 10 True Answer Correct 240 Incorrect Reference Ref 4 2 Table Consumer Surplus and Phantom Tickets Look at the table Consumer Surplus and Phantom Tickets If the box office price of a ticket to see Phantom of the Opera is 50 and there is no other market for tickets the total consumer surplus for the five students is 100 Incorrect 175 Incorrect 230 Incorrect 240 True Answer Correct Reference Ref 4 2 Table Consumer Surplus and Phantom Tickets Look at the table Consumer Surplus and Phantom Tickets If the box office price of a ticket to see Phantom of the Opera is 130 and there is no other market for tickets the total consumer surplus for the five students is 150 Incorrect 125 Incorrect 20 True Answer Correct 0 Incorrect 13 14 Reference Ref 4 3 Table Consumer Surplus Look at the table Consumer Surplus If the price of a ticket to see The Nutty Nutcracker is 50 Lois s consumer surplus is 60 Incorrect 50 True Answer Correct 15 Incorrect 240 Incorrect 15 16 Reference Ref 4 3 Table Consumer Surplus Look at the table Consumer Surplus If the price of a ticket to see The Nutty Nutcracker is 50 Narum s consumer surplus is 60 Incorrect 50 Incorrect 15 True Answer Correct 240 Incorrect Reference Ref 4 3 Table Consumer Surplus Look at the table Consumer Surplus If the price of a ticket to see The Nutty Nutcracker is 75 Lois s consumer surplus is 25 True Answer Correct 60 Incorrect 75 Incorrect 100 Incorrect 17 18 Reference Ref 4 3 Table Consumer Surplus Look at the table Consumer Surplus If the price of a ticket to see The Nutty Nutcracker is 75 Miguel s consumer surplus is 60 Incorrect 50 Incorrect 15 True Answer Correct 240 Incorrect Reference Ref 4 3 Table Consumer Surplus Look at the table Consumer Surplus If the price of a ticket to see The Nutty Nutcracker is 50 and there is no other market for tickets total consumer surplus for the five students is 105 True Answer Correct 130 Incorrect 270 Incorrect 320 Incorrect 19 20 Reference Ref 4 3 Table Consumer Surplus Look at the table Consumer Surplus If the price of a ticket to see The Nutty Nutcracker is 75 and there is no other market for tickets the total consumer surplus for the five students is 190 Incorrect 125 Incorrect 40 True Answer Correct 0 Incorrect Reference Ref 4 3 Table Consumer Surplus Look at the table Consumer Surplus If the tickets to The Nutty Nutcracker are free and there is no other market for tickets the total consumer surplus for the five students is 0 Incorrect 100 Incorrect 150 Incorrect 320 True Answer Correct 21 We can measure total consumer surplus for good X as the sum of the individual consumer surpluses for all buyers of X True Answer Correct the area above the demand curve for X and below the price of X Incorrect the area bounded by the demand curve for X and the two axes Incorrect the area above the supply curve for X Incorrect 22 Consumer surplus for an individual buyer is equal to the consumer s willingness to pay for the good minus the marginal cost of producing the good Incorrect the price of the good minus the marginal cost of producing the good Incorrect the consumer s willingness to pay for the good minus the price of the good True Answer Correct the marginal cost of the good minus the consumer s willingness to pay for the good Incorrect Consumer surplus can be found by computing the area above the supply curve and below the price Incorrect under the supply curve and above the price Incorrect under the demand curve and above the price True Answer Correct under the demand curve and below the price Incorrect 23 24 Reference Ref 4 4 Table Music Downloads Look at the table Music Downloads Two
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