quiz24 - 1 Chapter 7 1. Willingness to pay a. measures the...

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1 Chapter 7 1. Willingness to pay a. measures the value that a buyer places on a good. b. is the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept. c. is the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept. d. is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it. 2. When a buyer’s willingness to pay for a good is equal to the price of the good, a. the buyer’s consumer surplus for that good is maximized. b. the buyer will buy as much of the good as the buyer’s budget allows. c. the price of the good exceeds the value that the buyer places on the good. d. the buyer is indifferent between buying the good and not buying it. 3. Suppose Lauren, Leslie and Lydia all purchase bulletin boards for their rooms for $15 each. Lauren's willingness to pay was $35, Leslie's willingness to pay was $25, and Lydia's willingness to pay was $30. Total consumer surplus for these three would be a. $15. b. $30. c. $45. d. $90. 4. Jeff decides that he would pay as much as $3,000 for a new laptop computer. He buys the computer and realizes consumer surplus of $700. How much did Jeff pay for his computer? a. $700
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This note was uploaded on 05/16/2010 for the course ECO BA 521 taught by Professor Dr.bridges during the Spring '10 term at Andrew Jackson.

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quiz24 - 1 Chapter 7 1. Willingness to pay a. measures the...

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