Questions 10-13

Question 10 (1 point) (Lecture 6) Which of the following is maximized by an officiant allocation of resources? O consumer surplus producer surplus consumer surplus and producer surplus in the absence of other parties O consumer surplus minus producer surplus in the absence of other parties Question 11 (1 point) (Lecture 6) Jen values her time at $60 an hour. She spends 2 hours giving a massage. Colleen was willing to pay as much as $300 for the massage, but they negotiate a price of $200. Which of the following is true regarding this transaction? consumer surplus is $40 larger than producer surplus consumer surplus is $20 larger than producer surplus OOC producer surplus is $20 larger than consumer surplus producer surplus is $40 larger than consumer surplus Question 12 (1 point) (lecture 6) Market demand is given as Qd = 80 - P. Market supply is given as Qs - 3P. At the equilibrium price and quantity, what is consumer surplus? what is producer surplus? CS-$2000; PS-$400 CS-$2200; PS-$200 CS-$1600; PS-$800 CS=$1800; PS=$600 Question 13 (1 point) (lecture 6) Market demand is given as Qd = 80 -P. Market supply is given as Qs = 3P. Suppose the government passes a law that dictates the economy to produce 30 units (Q-30). What would be the result? Both CS & PS decrease Both CS & PS increase there will be a deadweight loss from underproduction OO there will be a deadweight loss from overproduction