Micro-Economics Ch 4 Questions

# Micro-Economics Ch 4 Questions - Name Date 1 Consider the...

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Name: __________________________ Date: _____________ 1. Consider the market for milkshakes. An increase in the consumer surplus may result from: A) an increase in the price of milkshakes. B) an increase in the supply of milkshakes. C) a decrease in the demand for milkshakes. D) a decrease in the supply of milkshakes. 2. Suppose the United States removes the current sugar quotas and the market price of sugar drops. In the candy bar market, we would expect: A) the consumer surplus to increase. B) the consumer surplus to decrease. C) the consumer surplus to be unchanged. D) the deadweight loss to increase. 3. Along a given demand curve, a decrease in the price of a good: A) will increase consumer surplus. B) will decrease consumer surplus. C) will have no effect on consumer surplus. D) It's impossible to tell what will happen to consumer surplus. 4. Consumer surplus for an individual buyer is equal to: A) the consumer's willingness to pay for the good, minus the marginal cost of producing the good. B) the price of the good, minus the marginal cost of producing the good. C) the consumer's willingness to pay for the good, minus the price of the good. D) the marginal cost of the good, minus the consumer's willingness to pay for the good. 5. Consumer surplus can be found by computing the area: A) above the supply curve and below the price. B) under the supply curve and above the price. C) under the demand curve and above the price. D) under the demand curve and below the price. 6. Ashley bought a new pair of jeans. When she walked out of the store, she thought, “I got such a great deal; I would have paid \$40 more for these jeans!” This best represents the concept of: A) consumer surplus. B) producer surplus. C) total surplus. D) equilibrium.

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Micro-Economics Ch 4 Questions - Name Date 1 Consider the...

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