21. If the elasticity of supply of a good was 2, how much would the price have to increase to lead to an increase in output of 6 percent?

a. 12 percent.

b. 8 percent.

c. 3 percent.

d. 4 percent.

22. If the elasticity of supply coefficient for a good is one-sixth (in absolute terms), we know:

a. that for every 1% increase in quantity, there will be a 6% increase in price.

b. that for every 6% increase in quantity, there will be a 1% decrease in price.

c. that for every 6% increase in quantity, there will be a 1% increase in price.

d. that for every 1% increase in quantity, there will be a 6% decrease in price.

23. Consumer surplus is:

a. the total utility derived from consuming a good.

b. the area underneath the demand curve.

c. the difference between what consumers are willing to pay and what they are required to pay for a good.

d. the marginal utility of the last unit consumed multiplied by the number of units consumed.

24. Refer to Exhibit 7-2.

\fPrice Per Bottles of Wine Bottle of Wine Consumed Per Year $50 $40 $30 $20 $10