ECON Chapter7 Questions

# ECON Chapter7 Questions - Chapter_07_InClass_Questions...

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Chapter_07_InClass_Questions Multiple Choice Identify the choice that best completes the statement or answers the question. Table 7-4 The numbers in Table 7-1 reveal the maximum willingness to pay for a ticket to a Chicago Cubs vs. St. Louis Cardinal’s baseball game at Wrigley Field. Buyer Willingness to Pay Jennifer \$10 Bryce \$15 Dan \$20 David \$25 Ken \$50 Lisa \$60 ____ 1. Refer to Table 7-4. If tickets sell for \$20 each, then what is the total consumer surplus in the market? a. \$5 b. \$30 c. \$40 d. \$75 ____ 2. On a graph, consumer surplus is represented by the area a. between the demand and supply curves. b. below the demand curve and above price. c. below the price and above the supply curve. d. below the demand curve and to the right of equilibrium price. Table 7-6 The following table represents the costs of five possible sellers. Seller Cost Abby \$1,500 Bobby \$1,200 Carlos \$1,000 Dianne \$750 Evalina \$500 ____ 3. Refer to Table 7-6 . If the market price is \$1,000, the producer surplus in the market is a. \$700. b. \$750. c. \$2,250. d. \$3,700.

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Figure 7-6 Supply 1234 Quantity 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Price ____ 4. Refer to Figure 7-6 . If the price of the good is \$8.50, then producer surplus is a. \$2.50. b. \$6.50. c. \$8.00.
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## This note was uploaded on 02/10/2011 for the course ECON 224 taught by Professor Ozturk during the Spring '09 term at South Carolina.

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ECON Chapter7 Questions - Chapter_07_InClass_Questions...

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