# sample exam 3 answer - and since Producer Surplus = Amount...

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ARE 201 Spring 2009 Sample Exam #3 Answer Sheet MULTIPLE CHOICE (3 points each) 1. d 2. d 3. c 4. c 5. b 6. a 7. d 8. c 9. b 10. a 11. c 12. c 13. a 14. b 15. a 16. a 17. d 18. c TRUE/FALSE (2 points each) 1. F 2. T 3. T 4. T 5. F 6. F 7. F 8. T 9. F SHORT ANSWER APPLICATION/SCENARIO (10 points each) 1. ANSWER: a. \$14 b. 90 c. \$10 d. 85 e. \$360

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f. \$810 g. \$405 h. \$125 i. \$765 j. \$935 k. \$170 2. ANSWER: Start with the equation: Total Surplus = Consumer Surplus + Producer Surplus. Then, since Consumer Surplus = Value to buyers – Amount paid by buyers,
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Unformatted text preview: and since Producer Surplus = Amount received by sellers – Costs of sellers, then Total Surplus can be written as: Value to buyers – Amount paid by buyers + Amount received by sellers – Costs of sellers. Since the Amount paid by buyers equals the Amount received by sellers, the middle two terms cancel out and the result is: Total Surplus = Value to buyers – Costs of sellers....
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## This note was uploaded on 10/22/2009 for the course ARE 201 taught by Professor Eryuruk during the Fall '08 term at N.C. State.

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sample exam 3 answer - and since Producer Surplus = Amount...

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