Question 26 (2 points)

If a price floor is set below equilibrium:

Question 26 options:

a)	it will have no effect on the market.

b)	a shortage will result.

c)	a surplus will result.

d)	the floor will be binding.

Question 27 (2 points)

Consumer surplus is the amount buyers actually pay for a good minus the maximum amount they would be willing to pay for it.

Question 27 options:

	True
	False

Question 28 (2 points)

Use the following diagram to indicate the area of consumer and producer surplus when a price ceiling is binding.

Question 28 options:

a)

D + E

b)	A + B + G + L

c)	L + M + N + O

d)	A + B + C + G + H + L

e)	all areas, A through O

Question 29 (2 points)

A consumer's willingness to pay reflects:

Question 29 options:

a)	the maximum price at which he or she would buy the good or service.

b)	the minimum price at which he or she would buy the good or service.

c)	the cost of producing the good or service.

d)	the equilibrium price of the good or service.

Question 30 (2 points)

Adie wants to take some online classes this semester. She is willing to pay $1,000 for the first class, $800 for the second class, $700 for the third class, and $500 for the fourth. If online classes cost $750 each, Adie will take ____ online classes, and her consumer surplus will equal $_____.

Question 30 options:

a)	four; $600

b)	three; $350

c)

two; $400

d)

two; $300

e)

no; $0