šŸ·ļø LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION ā†’
Log in
HomeClass Notes1,200,000US530,000

ECON101 Lecture 4: ECON 101 chapter 4

56 views2 pages
sapphireelk701
8 Mar 2017
School
University of Delaware
Department
Economics
Course
ECON101
Professor
Kievana Haynes

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

The a mount of cons ume r s urplus de pe nds on ma rke t price. **de ma nd curve ** ma rgina l be ne fit: the a dditiona l be ne fit the cons ume r obta ins a fte r cons uming o n e. P roduce r s urplus : the lowe s t price a firm is willing to a cce pt for a good a nd the price it. Actually re ce ive s . ( the diffe re nce btw the two) s e rvice. ** re me mbe r : ma rgina l me a ns one a dditiona l unit not total. **whe n a ma rke t is not in e quilibrium the re is de a dwe ight los s ** S e ction 4. 3 gov"t inte rve ntion : p rice floors v. ce ilings :

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

ECON101 Lecture Notes - Lecture 7: Masala Chai, Economic Surplus, Lemonade
lemonserval609
ECON101 Lecture Notes - Lecture 4: Price Ceiling, Economic Surplus, Price Floor
violetmuskrat44
ECON101 Chapter Notes - Chapter 15: Economic Surplus, Perfect Competition, Demand Curve
violetmuskrat44

Related Questions

is the maximum amount that Sal is willing to pay for one 7) Sal likes to eat pizza. The more slice of pizza. A) market price B) producer surplus C) consumer surplus D) marginal cost E) marginal benefit

1. A shift outward of the production possibilities frontier line indicates

a. economic expansion has occurred and more of each good or resource can be produced.

b. a change between two goods produced.

c. less of both goods can be produced.

d. the producer is less efficient and incurring a reduction in economic wealth.

Ā 

Ā 

2. If the demand curve and supply curve arrive at an equilibrium price of $5 and quantity of 6, while the height of the consumer surplus triangle is 5, and the height of the producer surplus triangle is 5, it is correct to say

a. consumer surplus equals 30.

b. consumer surplus equals 15.

c. consumer surplus and producer surplus are both the same and equal 3.

d. producer surplus equals 30.

7) Indicate whether each of the following statements is true or false, and explain why.

A. Producer surplus tends to fall as the supply curve becomes more elastic.

B. Consumer surplus tends to rise as demand becomes more elastic.

C. The market demand curve indicates the minimum price buyers are willing to pay at each level of production.

D. The market supply curve indicates the minimum price required by sellers as a group to bring forth production.

E. Consumer surplus is the amount that consumers are willing to pay for a given good or service above and beyond the amount actually paid.