1 In a perfectly competitive market in equilibrium, consumers may receive a net benefit from their purchases in the market. This net benefit is measured by the: A) Excess demand. B) Consumer surplus. C) Price elasticity of demand. D) The price of the good. Question 2 The price of electricity fell by 10 percent and consumption increased by 8 percent. The elesticity of demand for electricity was_____ and we would say that electricity demands was______. A) 1.25; inelastic B) 0.8; inelastic C) 0.8; elastic D) 1.25; elastic Question 3 Suppose the price of gasoline increases but motorists in the portland area spend more on gasoline. This situation: A) Proves that the law of demand does not apply in Portland. B) Means that the demand for gasoline is inelastic. C) Must be due to an increase in an excise tax on gasoline. D) Means that the demand for gasoline is elastic. Question 4 Which of the following is the best example of an equilibrium? A) During the morning rush hour, it takes 45 minutes to drive into downtown on the freeway but only 30 minutes on side streets. B) Two sections of the same course meet at the same time across the hall from each other. Both instructors are ewually competent. One section is overcrowded while the other section has empty seats. C) A new game console has just gone on the market but it is impossible to find one for sale in the Portland area. D) The ARCO Station charges $3.65 for gas while, across the street, the shell station charges $3.95. A line of cars waits at the ARCO station but there is no line at the shell station