1. Which of the following explains consumer surplus for good A? Many consumers would be willing to pay more than the market price for good A. 2. Quantity demanded has decreased means the price of the product has risen and consequently consumers are demanding less of it. 3. The demand for a product has increased means the demand curve has shied to the right. 4. If the government imposes a price oor on the market for milk there will be a surplus for milk. 5. Coee and Cream are complements. when the price ofcoEee goes up, the demand for cream falls. 6. Because private owners are held responsible for the damage their property causes to the property of others than private owners have a strong incentive to reduce the chance that they will harm the property of others. T". A decrease in demand will cause a decrease in quantity supplied. 3. Invisible hand concept: when directed by competitive market prices the actions of self-interested individuals will tend to promote overall economic prosperity. 9. The Lawr of Supply states producers are willing to supply larger amounts of a good as its price increases. 1D. If demand increases and supply decreases equilibrium price will rise= fall or stay the same while quantity will increase. 11. The demand curve for a good is highly elastic while the supply curve is highly inelastic then a government tax on the good will cause sellers to bear the large share of the tax burden. 12. If pollution costs are external then firms will produce too much of a polluting good. 13.155. monopoly is most liker to emerge in a market when economies of scale are large relative to market demand. 14. An increase in the price of computer diskettes leads to an increase in total expenditures on the diskettes and it means the demand for computer diskettes is inelastic. 15. The Law of Diminishing h-Iarginal Returns explains the general shape of the firm's short-run cost curves. 16. Competitive Price Searcher rms are experiencing losses= in the transition from this period to longrun equilibrium, the number of firms in the market decreases