w6_L1_Willingnesstopay_RQ

w6_L1_Willingnesstopay_RQ - Demand, Willingness to Pay and...

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ARSC 1432 Microeconomics Co-Seminar SPRING 2009 1) Willingness to pay measures 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 seller actually receives for a good minus the minimum amount the seller is willing to accept. c.the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept. d.the maximum amount that a buyer will pay for a good. 2) A consumer’s willingness to pay measures a. the cost of a good to the buyer. b. how much a buyer values a good. c. how much a buyer has to pay to receive a good. d. how much a seller receives from the sale of a good. 3) If a consumer is willing and able to pay $15.50 for a particular good but the price of the good is $16.00, then a. the consumer would have consumer surplus of $0.50. b. the consumer would not purchase the good and would not have any consumer surplus. c. the consumer would increase his/her willingness and ability to pay by earning more. d. the market must not be a perfectly competitive market. 4) If a consumer is willing and able to pay $200 for a particular good but only has to pay $140, a. the consumer surplus is $60. b. the consumer surplus is $140. c. the consumer surplus is $200. d. the consumer surplus is $340. 5) If Brock is willing to pay $500 for a new suit, but is able to buy the suit for $350, his consumer surplus is a. $150. b. $350. c. $500. d. $850. 6) Caitlin would be willing to pay $50 to see Les Misérables, but buys a ticket for only $30. Caitlin values the performance at a. $20. b.
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w6_L1_Willingnesstopay_RQ - Demand, Willingness to Pay and...

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