Problem_set8_-_solutions

Problem_set8_-_solutions - EC201 Introduction to...

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EC201 Introduction to Microeconomics (G.Lepori) Spring 2008 1 Name:_______________________ Student Number:_______________ Problem set # 8 (Due on Tuesday 03/18/2008, by 12:40pm) Please staple all the pages together. Circle the most appropriate answer to the following questions (each question is worth 1 point): 1) Consumer surplus is a. the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it. b. the amount a buyer is willing to pay for a good minus the cost of producing the good. c. the amount by which the quantity supplied of a good exceeds the quantity demanded of the good. d. a buyer's willingness to pay for a good plus the price of the good. ANS: A 2) If a consumer places a value of $15 on a particular good and if the price of the good is $17, then a. the consumer has consumer surplus of $2 if he or she buys the good. b. the consumer does not purchase the good. c.
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This note was uploaded on 03/30/2008 for the course ECON 201 taught by Professor C.liedholm during the Spring '07 term at Michigan State University.

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Problem_set8_-_solutions - EC201 Introduction to...

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