Answer the following microeconomics -

Question 1

If the price of a good rises while demand remains unchanged, then total consumer surplus will ____________.

1 point

We can't say.

decrease

increase

remain unchanged

2.

Question 2

Aisha is willing to spend $40 for a haircut. If she finds a salon where the price of a haircut is only $15, she will receive ______ in consumer surplus from this transaction.

1 point

$25

$0

$40

$15

3.

Question 3

Natasha, Nelson, and Nikolai are all looking to buy flashlights for a camping trip. Natasha is willing to pay $4, Nelson is willing to pay $10, and Nikolai is willing to pay $20. If the actual price of a flashlight turns out to be $13, what is the total consumer surplus for these three shoppers?

1 point

$21

$7

0

-$5

4.

Question 4

If the price of a good falls while supply remains unchanged, then total producer surplus will ____________.

1 point

remain unchanged

increase

decrease

We can't say.

5.

Question 5

You are willing to sell your coin collection for a minimum price of $1,000. You find a buyer who offers $1,500. In this transaction, you will receive ________ in producer surplus.

1 point

$1,000

$500

$1,500

$0

6.

Question 6

Ahmed is willing to mow lawns for $10 each, Boris is willing to mow lawns for $20 each, and Chelsea is willing to mow lawns for $30 each. If the going rate for lawn mowing is $15, what is the total producer surplus received by the three of them?

1 point

-$15

$5

0

$35

7.

Question 7

The fact that there is a positive amount of total surplus in a market shows that:

1 point

the cost of producing most goods is zero.

consumers overpay for most products.

there are gains from trade.

it is impossible for both parties to a transaction to benefit from it.

8.

Question 8

Milk is an input in the production of cheese, and cheese and bagels are complements. An increase in the price of milk will _________ the producer surplus in the market for bagels.

1 point

increase

not change

decrease

first increase and then decrease

9.

Question 9

Tomatoes are an input in the production of ketchup, and ketchup and mustard are substitutes. A decrease in the price of tomatoes will _________ the total surplus in the market for mustard.

1 point

first increase and then decrease

increase

decrease

not change

10.

Question 10

Rent controls set a price ceiling below the equilibrium price and therefore:

1 point

quantity demanded exceeds the quantity supplied.

quantity supplied exceeds the quantity demanded.

a supply surplus of rental units will result.

all poor people will be helped.

11.

Question 11

The market for apples is in equilibrium at a price of $0.50 per pound. If the government imposes a price ceiling in the market at a price of $0.80 per pound, then:

1 point

quantity demanded will decrease.

there will be a shortage of the good.

the price ceiling will not affect the market price or output.

quantity supplied will increase.

12.

Question 12

If the price of a good is held above the equilibrium price:

1 point

demand will decrease.

quantity supplied will exceed quantity demanded.

quantity demanded will exceed quantity supplied.

supply will increase.

13.

Question 13

A price floor in the market for wheat that is set above the current market price:

1 point

decreases the price paid by consumers.

does not change the price received by farmers.

increases the price paid by consumers.

decreases the price received by farmers.

14.

Question 14

The going rent in the market for 1-bedroom apartments in your neighborhood is $400. If the government imposes a price ceiling of $200 in this market total surplus in this market will:

1 point

decrease first, and then increase

increase

decrease

not change

15.

Question 15

The current price in the market for milk is $8.00 If the government imposed a price floor of $4.00 in this market total surplus would ____________.

1 point

decrease

increase

not change

decrease first, and then increase