Ch09 - CHAPTER 9 The Analysis of Competitive Markets...

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Unformatted text preview: CHAPTER 9 The Analysis of Competitive Markets MULTIPLE CHOICE Section 9.1 Figure 9.1 easy 1. Refer to Figure 9.1. If the market is in equilibrium, the consumer surplus earned by the buyer of the 1st unit is a. $5.00 b. $15.00 c. $22.50 d. $40.00 easy 2. Refer to Figure 9.1. If the market is in equilibrium, the producer surplus earned by the seller of the 1st unit is a. $5.00 b. $10.00 c. $15.00 d. $20.00 e. $40.00 moderate 3. Refer to Figure 9.1. If the market is in equilibrium, total consumer surplus is a. $30. b. $70. c. $400. d. $800. e. $1200. moderate 4. Refer to Figure 9.1. If the market is in equilibrium, total producer surplus is a. $30. b. $70. c. $400. d. $800. e. $1200. 52 CHAPTER 9 TEST BANK THE ANALYSIS OF COMPETITIVE MARKETS SIXTH EDITION easy 5. Refer to Figure 9.1. If the market is in equilibrium, total consumer and producer surplus is a. $0. b. $100. c. $800. d. $1200. e. $2000. easy 6. Refer to Figure 9.1. If the government establishes a price ceiling of $20, how many widgets will be sold? a. 20 b. 30 c. 40 d. 50 e. 60 moderate 7. Refer to Figure 9.1. Suppose the market is currently in equilibrium. If the government establishes a price ceiling of $20, consumer surplus will a. fall by $200. b. fall by $300. c. remain the same. d. rise by $200. e. rise by $300. moderate 8. Refer to Figure 9.1. Suppose the market is currently in equilibrium. If the government establishes a price ceiling of $20, producer surplus will a. fall by $200. b. fall by $300. c. remain the same. d. rise by $200. e. rise by $300. easy 9. Refer to Figure 9.1. If the government establishes a price ceiling of $20, the resulting deadweight loss will be a. $0. b. $20. c. $30. d. $300. e. $600. easy 10. Refer to Figure 9.1. If the government establishes a price ceiling of $20, total consumer and producer surplus will be a. $30. b. $400. c. $600. d. $900. e. $1200. 53 TEST BANK CHAPTER 9 SIXTH EDITION THE ANALYSIS OF COMPETITIVE MARKETS easy 11. Consumer surplus measures a. the extra amount that a consumer must pay to obtain a marginal unit of a good or service. b. the excess demand that consumers have when a price ceiling holds prices below their equilibrium. c. the benefit that consumers receive from a good or service beyond what they pay. d. gain or loss to consumers from price fixing. easy 12. When government intervenes in a competitive market by imposing an effective price ceiling, we would expect the quantity supplied to ______________ and the quantity demanded to ______________. a. fall; rise b. fall; fall c. rise; rise d. rise; fall easy 13. Producer surplus is measured as the a. area under the demand curve above market price. b. entire area under the supply curve....
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This note was uploaded on 08/07/2011 for the course ECON 105 taught by Professor Prof.eco during the Spring '11 term at Indian School of Business.

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Ch09 - CHAPTER 9 The Analysis of Competitive Markets...

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