5. Consumer and Producer Surplus; Price Ceilings and Floors

Refer to Figure 7-6. When the price is p2, producer surplus is:

Customer willingness to pay depends on which of the following?

An increase in income will most likely:

Blake eats two bags of potato chips. If his willingness to pay for the first bag is \$3 and for the second bag is \$2, and the market price per bag is \$2, what is Blake's total consumer surplus from buying two bags?

Which of the following statements is true regarding consumer surplus and willingness to pay in consumer markets compared to business markets?

Which of the following best defines consumer surplus?

Which of the following statements best describes the example commonly used to demonstrate consumer surplus and willingness to pay in markets?

Consumers are diverse with distinct needs and wants, resulting in ________.

Which of the following is an example of a final good or service?

All else equal, what happens to consumer surplus if the price of a good increases?

All else held constant, which one of the following will decrease if a firm increases its net income?

The demand for a heart transplant would be considered price:

You pay more for insurance coverage if you drive a lot because:

Which of the following best describes the relationship between the cost of a tire and a consumer's willingness to pay, assuming the cost reflects the expected life of the tire?

Which of the following items is most likely to be a complement to coffee?