1. Figure shows the market for economics textbooks. What will be Figure the value of consumer surplus if the market price is $10?

A. $900.

B. $600.

C. $1500.

D. $450.

2. Consider Figure that represents the market for long-stemmed roses. If the market clearing price is $15, what is the total value of gains Price from trade?

A. $800.

B. $200.

C. $600.

D. $400.

3. The concept of consumer surplus is best described by the following situation.

A. Jamie bought twenty video games at $2 apiece, since these were on sale.

B. Ron purchased a laptop last month for $700, now it is selling for $550.

C. The maximum price that Jackie was willing to pay for an iphone was $400, but she bought it for $250 on black Friday.

D. Kevin was surprised that he could sell his economics text for $26 on Amazon, although he was willing to accept $20 for it.

4. The consequences of decriminalizing illegal drugs have long been debated. Some claim that legalization will lower the price of these drugs and reduce related crime. Others claim that more people will use these drugs. Suppose that some of these drugs are legalized so that anyone may sell them and use them.

Based on positive economic analysis, such decriminalization will lead to

A. An increase in quantity demanded of these drugs and in price.

B. A reduction in quantity demanded of these drugs and an increase in price.

C. A reduction in both quantity demanded of these drugs and in price.

D. A reduction in price of these drugs and an increase in quantity demanded.

5. There are simultaneous changes in the demand for and supply of tablet devices, with the consequences being an unambiguous decrease in the equilibrium quantity of these devices but no change in the market clearing price. What changes in the demand for and supply of tablet devices could have generated these outcomes?

A. Demand decreases and supply decreases.

B. Demand decreases and supply increases.

C. Demand increases and supply decreases.

D. Demand increases and supply increases.

Transcribed Image Text:

30 25 20- 15- 10- Price 0 10 20 30 30 D 40 50 60 70 80 90 100 Quantity 30- 25- 20- 15 10- Price S D 0 10 20 30 40 50 60 70 80 90 100 Quantity 30 25 20- 15- 10- Price 0 10 20 30 30 D 40 50 60 70 80 90 100 Quantity 30- 25- 20- 15 10- Price S D 0 10 20 30 40 50 60 70 80 90 100 Quantity

Answer rating: 100% (QA)

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