chapter 9 - Chapter 9 9.1 Evaluating the Gains and Losses...

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ECON MICRO
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Chapter 19 / Exercise 5
ECON MICRO
McEachern
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Chapter 9 9.1 Evaluating the Gains and Losses from Government Policies--Consumer and Producer Surplus Figure 9.1 1) Refer to Figure 9.1. If the market is in equilibrium, the consumer surplus earned by the buyer of the 1st unit is ________. A) $5.00 B) $15.00 C) $22.50 D) $40.00 Answer: D Diff: 1
Section: 9.1 2) Refer to Figure 9.1. If the market is in equilibrium, the producer surplus earned by the seller of the 1st unit is ________. D
Diff: 1 Section: 9.1 1
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ECON MICRO
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Chapter 19 / Exercise 5
ECON MICRO
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3) Refer to Figure 9.1. If the market is in equilibrium, total consumer surplus is D Diff: 2
Section: 9.1 4) Refer to Figure 9.1. If the market is in equilibrium, total producer surplus is C Diff: 2
Section: 9.1 5) Refer to Figure 9.1. If the market is in equilibrium, total consumer and producer surplus is A) $0. B) $100. C) $800. D) $1200. E) $2000. Answer: D
Diff: 1 Section: 9.1 6) Refer to Figure 9.1. If the government establishes a price ceiling of $20, how many widgets will be sold? A Diff: 1
Section: 9.1 2
7) Refer to Figure 9.1. Suppose the market is currently in equilibrium. If the government establishes a price ceiling of $20, consumer surplus will C Diff: 2
Section: 9.1 8) Refer to Figure 9.1. Suppose the market is currently in equilibrium. If the government establishes a price ceiling of $20, producer surplus will B Diff: 2
Section: 9.1 9) Refer to Figure 9.1. If the government establishes a price ceiling of $20, the resulting deadweight loss will be A) $0. B) $20. C) $30. D) $300. E) $600. Answer: D
Diff: 1 Section: 9.1 10) Refer to Figure 9.1. If the government establishes a price ceiling of $20, total consumer and producer surplus will be D Diff: 1
Section: 9.1 3
11) Consumer surplus measures C
Diff: 1 Section: 9.1 12) When government intervenes in a competitive market by imposing an effective price ceiling, we would expect the quantity supplied to ________ and the quantity demanded to ________. A Diff: 1
Section: 9.1

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