Question

question 1 to 4

1 a b C d The demand curve shows The maximum amount consumers are willing to pay for particular units of a good. the minimum amount consumers are willing to pay for particular units of a good. the average amount consumers are willing to pay for particular units of a good. that consumers want to pay the lowest price possible. 2 a b C d Consumer surplus is the difference between the quantity of a good demanded and the quantity supplied. the difference between the price that consumers are willing to pay for a good and the amount they actually pay. the quantity of a good that remains on the market in instances of market failure. the amount of revenue collected from an excise tax. 3 b Bob and Tom each want to buy an ice cream cone. Bob is willing to pay $2.50 and Tom is willing to pay $4.00. If the ice cream cone costs $2.25, what is the total consumer surplus after Bob and Tom make their purchases? $6.50 $4.50 $2.00 $0.25 d Peter, Paul, Bernie, and Alex all want to attend a football game. The admission price is $48. Peter is willing to pay $59 for the ticket. Paul is willing to pay $39. Bernie is willing to pay $45 and Alex is willing to pay $55. Based on this information, who will go to the game? Paul, Bernie, and Alex a

Answer 1

a) The demand curve shows the maximum amount that the consumer in the market are willing to pay for a particular goods in the market. the answer is "A".

b) "B"

The consumer surplus is the difference between the amount that the consumer are willing to pay and the actual amount that they are paying in the market.

c) "C"

Total consumer surplus in the market will be $2.

d) "B"

Peter and alex will be going to the football game.