e. all of the above In which of the following cases must price always fall? 2-58 a. Demand increases and supply increases. b. Demand decreases and supply decreases. c. Supply increases and demand remains constant. d. Demand decreases and supply increases. e. Both and c d Consumer surplus 2-59 a. is positive for all but the last unit purchased. b. for a particular unit of consumption is computed by taking the difference between demand price and market price. c. for all units consumed is the area below demand and above market price over all the units consumed. d. added to producer surplus provides a measure of the net gain to society from the production and consumption of the good. e. all of the above If the demand price for the 2,000th unit of a good is $10, then 2-60 a. total consumer surplus for 2,000 units is $10,000. b. the economic value of the 2,000th unit is $10. c. consumer surplus for the 2,000th unit can be computed by subtracting the supply price for the 2,000th unit. d. the net gain to society from the production and consumption of the 2,000th unit can be computed by subtracting the supply price from $10. e. Both and b d Suppose an individual buyer values a pound of butter at $10. If the market price of butter is $8, 2-61 what is the consumer surplus for this buyer? $0 $2 $3 $4 $5 If the market price of a good is $150 and the supply price of the good is $70, what is the producer 2-62 surplus if any? $0 $70 $80 $150 $220 Suppose the demand and supply curves for good are both And, the demand for the 2-63 X linear. first unit of is $28, and the supply price for the first unit of is $6. If the equilibrium price for X X
e. all of the above 2-58 In which of the following cases must price always fall? a. Demand increases and supply increases. b. Demand decreases and supply decreases. c. Supply increases and demand remains constant. d. Demand decreases and supply increases. e. Both c and d 2-59 Consumer surplus a. is positive for all but the last unit purchased. b. for a particular unit of consumption is computed by taking the difference between demand price and market price. c. for all units consumed is the area below demand and above market price over all the units consumed. d. added to producer surplus provides a measure of the net gain to society from the production and consumption of the good. e. all of the above 2-60 If the demand price for the 2,000th unit of a good is $10, then a. total consumer surplus for 2,000 units is $10,000. b. the economic value of the 2,000th unit is $10. c. consumer surplus for the 2,000th unit can be computed by subtracting the supply price for the 2,000th unit. d. the net gain to society from the production and consumption of the 2,000th unit can be computed by subtracting the supply price from $10. e. Both b and d 2-61 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? $0 $2 $3 $4 $5 2-62 If the market price of a good is $150 and the supply price of the good is $70, what is the producer surplus if any? $0 $70 $80 $150 $220 2-63 Suppose the demand and supply curves for good X are both linear. And, the demand for the first unit of X is $28, and the supply price for the first unit of X is $6. If the equilibrium price for
Test-Bank-Managerial-Economics-11th-Edition-Thomas.docx