Figure 7-5.On the graph below, Q represents the quantity of the good and P represents the good’s price.
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Refer to Figure 7-5. If the price of the good is $14, then producer surplus is
a.
$17.
b.
$22.
c.
$25.
d.
$28.
Figure 7-9
Refer to Figure 7-9. If the price decreases from $22 to $16, consumer surplus increases by
a.
$120.
b.
$360.
c.
$480.
d.
$600.
Refer to Figure 7-9. IF 40 units of the good are being bought and sold, then
The marginal cost to seller is equal to the marginal value to buyers
The marginal value to buyers is greater than the marginal cost to seller
The marginal cost to sellers is greater than the marginal value to buyers
Producer surplus would be greater than consumer surplus.
Figure 7-20
48
44 A
40
36
32 F G
28
24 H
20 B
16
12
8 C
4
1 2 3 4 5 6 7 8 9 10 11 Quantity
Refer to Figure 7-20. At Equilibrium, total surplus is
$36
$72
$108
$144
Figure 8-2
The vertical distance between points A and B represents a tax in the market.
Refer to Figure 8-2
The loss of consumer surplus as a result of the tax is
$1.50 B. $3 C. $4.50 D. $6.
