Mid-Term Sample Paper
-Practice MCQs for the Midterm for SECTIONS 3
a. is the amount of a good that a consumer can buy at a price below equilibrium price.
b. is the difference between the amount that a consumer actually pays for a good and the amount that the consumer is willing to pay for the good.
c. is the number of consumers who are excluded from a market because of scarcity.
d. measures how much a buyer values a good.
2).Suppose Bart, Benjamin, and Brent each purchase a particular type of electric pencil sharpener at a price of $20.
Bart’s willingness to pay was $22, Benjamin's willingness to pay was $25, and Brent's willingness to pay was
$30. Which of the following …show more content…
12) If the market price of an orange increases from $0.60 to $1.05, total consumer surplus
a. increases by $2.90.
b. decreases by $2.25.
c. decreases by $2.70.
d. decreases by $3.85.
13) Who experiences the largest loss of consumer surplus when the price of an orange increases from $0.70 to
d. All three individuals experience the same loss of consumer surplus.
14) Who experiences the largest gain in consumer surplus when the price of an orange decreases from $1.05 to
d. Alex and Barb experience the same gain in consumer surplus, and Carlos’s gain is zero.
15) 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.
16) Donald produces nails at a cost of $200 per ton. If he sells the nails for $350 per ton, hi s producer surplus per ton is
17) At Nick's Bakery, the cost to make homemade chocolate cake is $3 per cake. As a result of selling three cakes,
Nick experiences a producer surplus