C. the amount a consumer is willing to pay less the amount the consumer actually pays.

d. the total value of a good to a consumer.

 

193. If you pay a price exactly equal to your willingness to pay, then

a. your consumer surplus is $0.

b. your willingness to pay is less than your consumer surplus.

c. your consumer surplus is negative.

d. you place little value on the good.

 

This table refers to five possible buyers’ willingness to pay for Good Z.

 

Buyer Willingness to Pay

Cassie $8.50

Jamie 7.00

John 5.50

Jeremy 4.00

Sarah 3.50

 

194. Refer to the table shown. If the market price is $5.50, the consumer surplus in the market will be

a. $3.00.

b. $4.50.

c. $15.50.

d. $21.00.

 

195. Refer to the table shown. If the price of good Z is $6.90, who will purchase the good?

a. John and Sarah

b. John, Jeremy and Sarah

c. Cassie, Jamie and John

D. Cassie and Jamie

196. Refer to the table shown. Which of the following is NOT true?

a. The table is the demand schedule for good Z.

b. When the price is $3.50, each person would have a positive consumer surplus.

c. The demand schedule represented by the table shows the willingness to pay of the marginal buyer.

d. At a price of $4.00, total consumer surplus in the market will be $9.00.

197. Consumer surplus equals

A. Value to buyers - Amount paid by buyers.

b. Amount received by sellers - Costs of sellers.

c. Value to buyers - Costs of sellers.

d. Value to buyers - Amount paid by buyers + Amount received by sellers - Costs of sellers.

 

198.The area below a demand curve and above the price measures

a. producer surplus.

b. total surplus.

C. consumer surplus.

d. willingness to pay.

199. If the cost of producing automobiles increases, consumer surplus will

a. increase.

B. decrease.

c. remain constant.

d. increase, then decrease.

200. The cost of producing chocolate decreases. As a result, consumer surplus

a. decreases.

B. increases.

c. remains constant.

d. decreases, then increases.

 

201. Other things equal, if the price of a good falls, the consumer surplus

a. decreases.