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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## This note was uploaded on 11/24/2010 for the course ECON 1003 taught by Professor None during the Spring '10 term at University of Florida.

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w6_L1_Willingnesstopay_RQ - Demand Willingness to Pay and...

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