REAL ECON202 CHAPTER 4 QUIZ, COMPLETE SOLUTION 2024.

REAL ECON202 CHAPTER 4 QUIZ, COMPLETE SOLUTION
2024.

increase; supply
An increase in the consumer surplus in the market for milkshakes may result from a(n)
_____ in the _____ of milkshakes.

increase; supply
increase; price
decrease; demand
decrease; supply
will decrease
If there is a decrease in demand, assuming a positively sloped supply curve and a
negatively sloped demand curve, total surplus:

will remain the same.
may change, but we can't tell how.
will increase.
will decrease.
the sum of the individual producer surpluses for all buyers of X.
We can measure total producer surplus for good X as:

the area below the supply curve for X and above the price of X.
the area bounded by the supply curve for X and the two axes.
the area between the demand curve for X and the supply curve for X.
the sum of the individual producer surpluses for all buyers of X.
increase consumer surplus and total surplus
(Figure: Consumer and Producer Surplus) Look at the figure Consumer and Producer
Surplus. An increase in supply will:

increase consumer surplus and total surplus.
increase total surplus.
decrease producer surplus.
increase consumer surplus.
50
(Figure: The Market for Hamburgers) The figure The Market for Hamburgers shows the
weekly market for hamburgers in Irvine, Kentucky. If the price of burgers falls from
$1.50 to $1.00, there is a loss in producer surplus. How much of the loss accrues
because of the change in the quantity supplied?

$45
$75
$90
$50
will increase