Suppose an individual buyer values a pound of butter at $10. If the market price of butter is $8, what is the consumer surplus for this buyer?
A. $0
B. $5
C. $4
D. $2
E. $3
Answer: D
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The annual Great Sofa Round-up is a collaborative event between Colorado State University and the City of Fort Collins aims to help students and neighbors get rid of unwanted furniture, while giving people in need access to inexpensive sofas
Suppose on the day of the Round-up, your friends take their couches to the main parking lot on campus where the Round-up is held. Raj will not sell his couch for less than $30, Emily will not sell her couch for less than $50, Nara will not sell her couch for less than $20, Sergio just wants to get rid of his couch and he is willing to give it away for free. At the Round-up, potential buyers think that all the couches available are basically the same and they are willing to buy a couch for $25. Who will sell their couch and what is the value of the market producer surplus? A) Nara and Sergio; $30 B) Nara and Sergio; $5 C) Raj and Emily; $30 D) Emily, Nara, and Sergio; $25
On balance, markets do some things very well, and some things poorly
a. True b. False Indicate whether the statement is true or false
Suppose the firms in the chemical industry are allowed, free of charge, to dump harmful products into rivers. How will the price and output of the chemical products in a competitive market compare with their values under conditions of ideal economic efficiency?
a. The price would be too low, and the output would be too large. b. The price would be too high, and the output would be too large. c. The price would be too low, and the output would be too small. d. The price would be too high, and the output would be too small.
The fact that voters perceive their votes as unlikely to actually change the outcome of an election causes
a. voters to have little incentive to become informed about candidates and political issues. b. voters to spend a great deal of effort becoming informed about candidates and political issues. c. the percent of people who actually turn out to cast a vote on election day to be very high. d. people to be extremely reluctant to "waste" their votes on a third-party candidate.