AAEC 2305 EXAM 3 | QUESTIONS AND ANSWERS |
2025/2026 UPDATE | 100% CORRECT
For a given market in equilibrium, the area above the equilibrium price line and
below the demand curve is defined as ___________________. Answer -
Consumer surplus
For a given market in equilibrium, the area below the equilibrium price line and
above the supply curve is defined as __________________. Answer - Producer
surplus
For a given market in equilibrium, the area below the supply curve and to the
left of the equilibrium quantity is defined as _________________. Answer -
total cost of production
A ___________________ is a type of market in which there is only ONE SELLER
the commodity in question. Answer - monopoly
A _________________ is a type of market in which there is only ONE BUYER
the commodity in question. Answer - monopsony
Total surplus is defined as the SUM of Consumers' and Producers' surplus (T/F)
Answer - True
Total Surplus is maximized when market are in equilibrium (T/F) Answer - True
2025/2026 UPDATE | 100% CORRECT
For a given market in equilibrium, the area above the equilibrium price line and
below the demand curve is defined as ___________________. Answer -
Consumer surplus
For a given market in equilibrium, the area below the equilibrium price line and
above the supply curve is defined as __________________. Answer - Producer
surplus
For a given market in equilibrium, the area below the supply curve and to the
left of the equilibrium quantity is defined as _________________. Answer -
total cost of production
A ___________________ is a type of market in which there is only ONE SELLER
the commodity in question. Answer - monopoly
A _________________ is a type of market in which there is only ONE BUYER
the commodity in question. Answer - monopsony
Total surplus is defined as the SUM of Consumers' and Producers' surplus (T/F)
Answer - True
Total Surplus is maximized when market are in equilibrium (T/F) Answer - True
