Question
Source: https://www.youtube.com/watch?v=ictUYjkQeZU 1/ When a consumer is willing to pay $300 for an MP3 player that has a market price of $250, the consumer surplus
Source: https://www.youtube.com/watch?v=ictUYjkQeZU
1/ When a consumer is willing to pay $300 for an MP3 player that has a market price of $250, the consumer surplus is:
$550.
$75,000.
-$50.
$50.
2/ When a consumer is willing to pay $300 for an MP3 player that has a market price of $250, Paul Solman says that:
The producer of the MP3 player obtains a bonus.
The consumer of the MP3 player obtains a bonus.
The result is not fair.
The result is not efficient.
3/ When a producer is willing to sell an MP3 player for $200 that has a market price of $250,the producer surplus is:
-$50.
$50,000.
$450.
$50.
4/ When a producer is willing to sell an MP3 player for $200 that has a market price of $250, Paul Solman says that:
The result is not efficient.
The producer of the MP3 player obtains a bonus.
The consumer of the MP3 player obtains a bonus.
The result is not fair.
5/ A market equilibrium is efficient because it results in:
The largest possible surplus.
Consumer surplus greater than producer surplus.
No surplus at all.
Producer surplus greater than consumer surplus.
6/ The point of Cecilia Conrad's pecan pie story is that:
Efficiency guarantees fairness.
We should not subsidize pecan growers.
An efficient allocation need not be fair.
Economic growth is important because it produces a larger pie.
7/ Efficiency and fairness require trade-offs.
True
False
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started