Chapter Questions
Refer to the graph below. What is the value of consumer surplus when the market price is $$\$ 40 ?$$a. $400b. $800c. $4,000d. $8,000e. $16,000
Refer to the graph below. What is the value of producer surplus when the market price is $60?a. $100b. $150c. $1,000d. $1,500e. $3,000
Other things equal, a rise in price will result in which of the following?a. Producer surplus will rise; consumer surplus will rise.b. Producer surplus will fall; consumer surplus will fall.c. Producer surplus will rise; consumer surplus will fall.d. Producer surplus will fall; consumer surplus will rise.e. Producer surplus will not change; consumer surplus
Consumer surplus is found as the areaa. above the supply curve but below the price.b. below the demand curve but above the price.c. above the demand curve but below the price.d. below the supply curve but above the price.e. below the supply curve but above the demand curve.
Allocating kidneys to those with the highest net benefit (where net benefit is measured as the expected increase in life span from a transplant) is an attempt to maximizea. consumer surplus.b. producer surplus.c. profit.d. equity.e. respect for elders.