Business Consumers Willing to Pay
Flag question: Question 1Question 10.5 pts
Suppose Mona goes to the pet store to buy a Pomeranian puppy. She is willing to pay $200 for a new puppy, but she buys one for $160. What is Mona’s consumer surplus from this purchase?
$200
$160
$40
$360
Flag question: Question 2Question 20.5 pts
A supply curve represents what _______ are _______ for a good or service.
consumers; actually paying
producers; actually receiving
consumers; willing to pay
producers; willing to accept
Flag question: Question 3Question 30.5 pts
Consumers are willing to purchase a product up to the point wherethe marginal benefit of consuming it is equal to the marginal cost of producing it.
the marginal cost of producing it is equal to its price.
the marginal benefit of consuming it is equal to its price.
the marginal benefit is less than its price.
Flag question: Question 4Question 40.5 pts
In a competitive market, if the marginal cost is greater than the marginal benefit, then
the output level is less than the equilibrium quantity.
the output level is greater than the equilibrium quantity.
the output level is inefficiently low.
the output level is economically efficient.
Flag question: Question 5Question 50.5 pts
Which of the following correctly describes a competitive market equilibrium? Select all that apply.
The marginal benefit to consumers is equal to the marginal cost of production.
Economic surplus is maximized.
Consumer surplus is equal to producer surplus.
The output level is economically efficient.
Flag question: Question 6Question 60.5 pts
A legal _________ price that can be charged for a good or service is a price ______.equilibrium; control
minimum; ceiling
maximum; floor
minimum; floor
Flag question: Question 7Question 70.5 pts
To be binding, a price ceiling must
be set above the equilibrium price.
be set below the equilibrium price.
cause producer surplus to increase.
be equal to the price floor.
Flag question: Question 8Question 80.5 pts
Suppose the government imposes a tax of $4 on each pack of cigarettes purchased, and buyers are responsible for collecting and paying the tax. How would this tax be illustrated on a graph?
The demand and supply curves would both shift up by $4.
The demand and supply curves would both shift down by $4.
The demand curve for cigarettes would shift down by $4.
The demand curve for cigarettes would shift up by $4.
Flag question: Question 9Question 90.5 pts
Which of the following do NOT occur when a government taxes a good or service? Select all that apply.
Consumer surplus is reduced.
Producer surplus is reduced.
Consumer surplus is increased.
Producer surplus is increased.
Deadweight loss is eliminated.
Economic efficiency is reduced.
Economic efficiency is increased.
Flag question: Question 10Question 100.5 pts
Suppose the demand curve is relatively steeper than the supply curve, and the government implements a tax that the sellers are responsible for collecting and paying. Which of the following is true about the tax incidence?
The portion of the tax paid by the seller will be larger than the portion of the tax paid by the buyer.
Buyers will pay the entire burden of the tax.
The portion of the tax paid by the buyer will be larger than the portion of the tax paid by the seller.
Sellers will pay the entire burden of the tax.
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