Chapter 4 Quiz (word) - Chapter 4 Quiz 1 The consumer...

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Chapter 4 Quiz 1.) The consumer surplus is the difference between the total price that the buyer is willing to pay or able to pay for a good or service. The equilibrium price is when the supply of something matches the demand. They are inversely because if the equilibrium price fluctuates with con- sumer demand then there will not be a large consumer surplus. Fresh- man Maximum price willing to pay Equilib- rium price Consumer surplus Rita $100 $50 50 Emily 90 50 40 Chris 80 50 60 Pedro 70 50 20 Zak 60 50 10 Natalie 50 50 0 Upper- classman Maximum acceptable price Equilib- rium price Producer surplus Frank $25 $50 25 Cho 30 50 20 Toby 35 50 15 Susie 40 50 10 Rob 45 50 5 Anisha 50 50 0 2.) a.) b.) 3.) Underproduction is to little of something and Overproduction is to much. If you own a store and you decide to buy more shirts thatn you usually do, and you start selling less than you have been than thats underproduction. If you get less shirts and start to sell over what you got, that is
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