1. Which of the following statements best describes consumer surplus in the supply and demand model?
1. Which of the following statements best describes consumer surplus in the supply and demand model?
Use letters in alphabetical order to select options
A
Consumer surplus is the area in the supply and demand model that is below the market price and above the demand curve.
B
Consumer surplus is the area in the supply and demand model that is above the market price and above the demand curve.
C
Consumer surplus is the area in the supply and demand model that is below the market price and below the demand curve.
D
Consumer surplus is the area in the supply and demand model that is above the market price and below the demand curve.
2. Which of the following statements best describes the relationship between price and quantity demanded for a given good or service?
Use letters in alphabetical order to select options
A
A rise in price of a good or service almost always decreases the quantity demanded of that good or service.
B
A rise in price of a good or service always decreases the quantity demanded of that good or service.
C
A rise in price of a good or service almost always increases the quantity demanded of that good or service.
D
A rise in price of a good or service always increases the quantity demanded of that good or service.
3. Which one of the following statements best describes a price ceiling?
Use letters in alphabetical order to select options
A
A price ceiling causes supply to change.
B
A price ceiling keeps a price from falling below a certain level.
C
A price ceiling causes demand to change.
D
A price ceiling keeps a price from rising above a certain level.
Homework Answers
1. Ans: Consumer surplus is the area in the supply and demand model that is above the market price and below the demand curve.
2. Ans: A rise in price of a good or service almost always decreases the quantity demanded of that good or service.
3. Ans: price ceiling keeps a price from rising above a certain level.
Explanation:
A price ceiling is a government imposed price limit on how high a price is charged for a product or service.
Add Answer to:
1. Which of the following statements best describes consumer surplus in the supply and demand model?
Please assist with these questions, 1. Select whether the statement is true or false. Laws that...
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Please help with these questions, 1.Which statement(s) are most likely correct about supply? Use letters in...
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1 Consumer surplus is defined as the: gap between the supply curve and the market price....
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Q=100,000-10,000P solve for the consumer surplus at the
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Demand: Let the Market Demand curve for soybeans be given by the following equation: Q=100,000 -10,000P where the quantity of soybeans in kilograms P = the price of soybeans in dollars per kilogram. Supply: Let the Market Supply curve for soybeans be given by the equation: Q=-5,000+ 5,000P 3) Consumer Surplus: The Consumer Surplus (CS) is the triangular area under the demand curve and above the equilibrium price....
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When demand and supply are linear, consumer surplus is equal to: the area between the demand...
When demand and supply are linear, consumer surplus is equal
to:
the area between the demand curve and the price, out to the
quantity that is exchanged.
the area between the supply curve and the price, out to the
quantity that is exchanged.
the entire area between the demand curve and the price. See
Section 3.1.
the entire area between the supply curve and the price.
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1 Standard Model of Taxes Consider the standard supply and demand model shown in 1. The demand curve in the figure is given by PD 10-Q. One interpretation of demand curves is that they show the willingness to pay of the marginal consumer. For example, the willingness to pay of the person who buys the 5th unit is 10-5-5. The supply curve is given by PS Q. We saw in EC311 that supply curves are interpretable as the marginal cost...
Is the area found above market price and below the demand curve Producer surplus Quantity demanded...
Is the area found above market price and below the demand curve Producer surplus Quantity demanded Consumer surplus Social surplus
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Q=100,000-10,000P solve for the consumer surplus at the
equilibrium price and quantity
Demand: Let the Market Demand curve for soybeans be given by the following equation: Q=100,000 -10,000P where the quantity of soybeans in kilograms P = the price of soybeans in dollars per kilogram. Supply: Let the Market Supply curve for soybeans be given by the equation: Q=-5,000+ 5,000P 3) Consumer Surplus: The Consumer Surplus (CS) is the triangular area under the demand curve and above the equilibrium price....
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When demand and supply are linear, consumer surplus is equal
to:
the area between the demand curve and the price, out to the
quantity that is exchanged.
the area between the supply curve and the price, out to the
quantity that is exchanged.
the entire area between the demand curve and the price. See
Section 3.1.
the entire area between the supply curve and the price.
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Is the area found above market price and below the demand curve Producer surplus Quantity demanded Consumer surplus Social surplus
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