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Submit when finished answering the R button. Due to this being a web course, only scores will be shown, there will be back Question 1 1 pts Willingness to pay measures the value that a buyer places on a good. O is the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept. is the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept. O is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it. Next back Question 2 Consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it the amount a buyer is willing to pay for a good minus the cost of producing the good. the amount by which the quantity supplied of a good exceeds the quantity demanded of the good. Oa buyer's willingness to pay for a good plus the price of the good. Previous 4 Nex Figure 7-4 1Price F B D P1+ G P2+ Demand 02 Quantity Refer to Figure 7-4. Which area represents consumer surplus at a price of P1? BDF AFG ABDG ABC 00 F3 17 Question 4 Figure 7-3 A P2 B Demand eay 02 Refer to Figure 7-3. Area C represents the decrease in consumer surplus that results from a downward-sloping demand curve consumer surplus to new consumers who enter the market when the price falls from P2 to PI increase in producer surplas when quantity sold increases from 02 to Q1 decrease in consumer surplus to cach consumer in the market when the price increascs from PI to P2 3 4 6 C 95 Producer surplus measures the Obenefits to sellers of participating in a market. costs to sellers of participating in a market Oprice that buyers are willing to pay for sellers' output of a good or service benefit to sellers of producing a greater quantity of a good or service than buyers demand Previous Table 7-13 The only four producers in a market have the following costs: Seller Cost Abbey $30 Bev $40 Carl $55 Dale 865 Refer to Table 7-13, If Abbey, Bev, and Carl sell the good, and the resulting producer surplus is $55 altogether, then the price must have been O $40. O$50. $60 $70 11 FS -BBB $ & 7 4 5 3 9 R

Answer 1

1.

The willingness to pay for any goods and services are the value which a buyer places for that goods and services.

Hence it can be said that willingness to pay measures the value that a buyer places on a good.

Hence option first is the correct answer.

2.

The consumer surplus is the area of triangle made between below the demand curve and above the price.

In other words consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

Hence option first is the correct answer.

3.

The consumer surplus is the area of triangle made between below the demand curve and above the price.

In other words consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

Hence at price P1, the consumer surplus is the area of triangle (BDF).

Hence option first is the correct answer.

4.

The consumer surplus is the area of triangle made between below the demand curve and above the price.

In other words consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

As it can be seen in the diagram that area C is the loss of consumer surplus when price increases from P1 to P2.

Hence it can be said that area C is a decrease in the consumer surplus to each consumer in the market when the price increases from P1 to P2.

Hence option fourth is the correct answer.