Hey Tutors!

If you could explain the choices you pick for each questions that would be wonderful. I want to make sure all these notes are taken correctly.

1) Consumer Surplus (CS)

• happens when quantity supplied is larger than quantity demanded.

• happens when quantity demanded is larger than quantity supplied.

• is the area above the supply curve but below the price for the area being produced.

• is the area below a demand curve but above the price for the quantity being consumed.

2) Producer Surplus (PS)

• happens when quantity supplied is larger than quantity demanded.

• happens when quantity demanded is larger than quantity supplied.

• is the area above the supply curve but below the price for the area being produced.

• is the area below a demand curve but above the price for the quantity being consumed.

3) A price ceiling on gasoline at $1per gallon

• would help all consumers of gasoline.

• would help all gas station owners.

• would hurt some current consumers of gasoline.

• would help some gas station owners.

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