11.The concept of total surplus is a useful but imperfect measure of:
A. wellbeing
B. comparative advantage
C. market power
D. price elasticity of demand
12.Assume that burgers and pizzas are substitute goods in consumption only. When the burger price increases we will see which of the following changes in the pizza market?
A. An increase in demand and an increase in supply
B. An increase in demand and an increase in the quantity supplied
C. An increase in the quantity demanded and an increase in supply
D. An increase in the quantity demanded and no change to the quantity supplied
13.If the current price in a competitive market is $10 and the minimum of the the average total cost curve for a representative firm is $12, what is likely to occur to the market supply curve and the market price?
A. Supply will decrease and the price will rise
B. Supply will decrease and the price will fall
C. Supply will increase and the price will rise
D. Supply will increase and the price will fall
11.The concept of total surplus is a useful but imperfect measure of:
A. wellbeing
B. comparative advantage
C. market power
D. price elasticity of demand
12.Assume that burgers and pizzas are substitute goods in consumption only. When the burger price increases we will see which of the following changes in the pizza market?
A. An increase in demand and an increase in supply
B. An increase in demand and an increase in the quantity supplied
C. An increase in the quantity demanded and an increase in supply
D. An increase in the quantity demanded and no change to the quantity supplied
13.If the current price in a competitive market is $10 and the minimum of the the average total cost curve for a representative firm is $12, what is likely to occur to the market supply curve and the market price?
A. Supply will decrease and the price will rise
B. Supply will decrease and the price will fall
C. Supply will increase and the price will rise
D. Supply will increase and the price will fall
