Midterm+2+Answers 09f

Midterm+2+Answers 09f - Name: _ Class: _ Date: _ ID: A Econ...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Econ 20A F09 - Midterm 2 Multiple Choice Identify the choice that best completes the statement or answers the question. Table 7-2 This table refers to five possible buyers' willingness to pay for a case of Vanilla Coke. Buyer Willingness To Pay David $8.50 Laura $7.00 Megan $5.50 Mallory $4.00 Audrey $3.50 ____ 1. Refer to Table 7-2 . Which of the following is not true? a. At a price of $9.00, no buyer is willing to purchase Vanilla Coke. b. At a price of $5.50, Megan is indifferent between buying a case of Vanilla Coke and not buying one. c. At a price of $4.00, total consumer surplus in the market will be $9.00. d. All of the above are correct. Table 7-3 The only four consumers in a market have the following willingness to pay for a good: Buyer Willingness to Pay Carlos $15 Quilana $25 Wilbur $35 Ming-la $45 ____ 2. Refer to Table 7-3. If there is only one unit of the good and if the buyers bid against each other for the right to purchase it, then the consumer surplus will be a. $0 or slightly more. b. $10 or slightly less. c. $30 or slightly more. d. $45 or slightly less.
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Name: ________________________ ID: A 2 Table 7-5 For each of three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Alex, Barb, and Carlos are the only three buyers of oranges, and only three oranges can be supplied per day. First Orange Second Orange Third Orange Alex $2.00 $1.50 $0.75 Barb $1.50 $1.00 $0.80 Carlos $0.75 $0.25 $0 ____ 3. Refer to Table 7-5. If the market price of an orange is $0.40, a. 6 oranges are demanded per day, and total consumer surplus amounts to $4.45. b. 6 oranges are demanded per day, and total consumer surplus amounts to $5.10. c. 7 oranges are demanded per day, and total consumer surplus amounts to $5.35. d. 7 oranges are demanded per day, and total consumer surplus amounts to $5.50. ____ 4. Refer to Table 7-5. Which of the following statements is correct? a. Neither Barb’s consumer surplus nor Carlos’s consumer surplus can exceed Alex’s consumer surplus, for any price of an orange. b. All three individuals will buy at least one orange only if the price of an orange is less than $0.25. c. If the price of an orange is $0.60, total consumer surplus is $4.90. d. All of the above are correct. ____ 5. Kristi and Rebecca sell lemonade on the corner. It costs them 7 cents to make each cup. On a certain day, they sell 40 cups, and their producer surplus for that day amounts to $15.20. Kristi and Rebecca sold each cup for a. 31 cents. b. 38 cents. c. 45 cents. d. 55 cents.
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Name: ________________________ ID: A 3 Figure 7-7 ____ 6. Refer to Figure 7-7 . Which area represents the increase in producer surplus when the price rises from P1 to P2 due to new producers entering the market? a. BCG b. ACH c. DGH d. AHGB
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Name: ________________________ ID: A 4 Figure 7-11 ____ 7. Refer to Figure 7-11 . Area A represents a. producer surplus to new producers entering the market as the result of an increase in price from P1 to P2.
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This note was uploaded on 03/11/2012 for the course ECON 20A 45206 taught by Professor Chen during the Spring '12 term at UC Irvine.

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Midterm+2+Answers 09f - Name: _ Class: _ Date: _ ID: A Econ...

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