Question 1

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $0.50, how much total producer surplus is earned by these three sellers?
​

Accepted Answer

A)   $1.50
B)   $1
C)   $0.50
D)   $0E) A) and B)
F) None of the above

Question 2

. Use the figure Producer Surplus in the Market for Marzipan. What is the minimum price that sellers must get to earn at least $9 in producer surplus?
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Figure: Producer Surplus in the Market for Marzipan

Accepted Answer

The answer of . Use the figure Producer Surplus in...

Question 3

What is a supply curve?

Accepted Answer

A)   a curve that illustrates the relationship between the price of a good and the quantity that people are willing to buy
B)   a curve that illustrates the relationship between the price of a good or service and the quantity that firms are willing to sell
C)   a table that shows the quantities that sellers are willing to sell at various prices
D)   a table that shows the quantities that people are willing to buy at various pricesE) C) and D)
F) B) and C)

Question 4

. Use the figure Producer Surplus in the Market for Marzipan I. What is producer surplus at a price of $5 per pound?
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Figure: Producer Surplus in the Market for Marzipan I

Accepted Answer

A)   $1
B)   $2
C)   $3
D)   $4E) A) and C)
F) A) and B)

Question 5

Good A and good B are complements in production. If the price of good A increases, then the _____ of good A increases, and the _____ of good B increases.

Accepted Answer

A)   quantity supplied; supply
B)   quantity supplied; quantity supplied
C)   supply; supply
D)   supply; quantity suppliedE) None of the above
F) A) and B)

Question 6

Use the figure The Supply Curve. What is represented by the movement from point X to point Y?
​
Figure: The Supply Curve

Accepted Answer

A)   a decrease in quantity supplied
B)   an increase in quantity supplied
C)   an increase in supply
D)   a decrease in supplyE) B) and C)
F) B) and D)

Question 7

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $8, how many mittens will Eliza supply, and how much producer surplus will Eliza earn?
​

Accepted Answer

A)   four mittens supplied and $3 of producer surplus
B)   three mittens supplied and $12 of producer surplus
C)   four mittens supplied and $0 of producer surplus
D)   four mittens supplied and $12 of producer surplusE) B) and D)
F) B) and C)

Question 8

The difference between the price received from selling a product and the marginal cost of producing that product is called:

Accepted Answer

A)   profit.
B)   producer surplus.
C)   deadweight loss.
D)   consumer surplus.E) A) and B)
F) None of the above

Question 9

Suppose that ideal weather conditions, including optimal rainfall, have created an enormous soybean crop in the United States. How would this affect the supply of soybeans in the United States?

Accepted Answer

A)   There would be a downward movement to the left along a supply curve.
B)   There would be a shift to the left of the supply curve.
C)   There would be a shift to the right of the supply curve.
D)   There would be an upward movement to the right along a supply curve.E) C) and D)
F) A) and B)

Question 10

. Use the figure Producer Surplus in the Market for Marzipan II. What is producer surplus at a price of $9 per pound?
​
Figure: Producer Surplus in the Market for Marzipan II

Accepted Answer

A)   $9
B)   $8
C)   $20
D)   $16E) None of the above
F) A) and B)

Question 11

Which of the following does NOT cause the supply curve to shift to the left?

Accepted Answer

A)   an decrease in price
B)   an increase in production costs
C)   a decrease in the number of firms
D)   the lower price expectations of sellersE) B) and C)
F) A) and B)

Question 12

. Use the figure Producer Surplus in the Market for Marzipan. Calculate producer surplus if the price of marzipan is $8 per pound.
​
Figure: Producer Surplus in the Market for Marzipan

Accepted Answer

The answer of . Use the figure Producer Surplus in...

Question 13

Use the table Marginal Cost of Producing Candles. What is the producer surplus earned on the second unit of production if the price of this good is $1.75?
​

Accepted Answer

A)   $0
B)   $0.75
C)   $1.00
D)   $0.25E) B) and D)
F) B) and C)

Question 14

An increase in the production of one good has led to an increase the supply of another good. What are these two goods?

Accepted Answer

A)   substitutes in production
B)   substitutes in consumption
C)   complements in production
D)   complements in consumptionE) C) and D)
F) None of the above

Question 15

What is the marginal cost of a good?

Accepted Answer

A)   the cost of producing a typical unit
B)   the cost of producing one more unit
C)   the variable costs of producing a good
D)   the per-unit costs of producing a goodE) A) and B)
F) B) and C)

Question 16

. Use the figure Producer Surplus in the Market for Marzipan. Calculate producer surplus if the price of marzipan increases from $6.50 per pound to $9 per pound.
​
Figure: Producer Surplus in the Market for Marzipan

Accepted Answer

$16 - $7.50 = $8.50....

Question 17

Which of the following would shift the supply of pumpkin pie to the right?

Accepted Answer

A)   an increase in the price of pumpkin pie
B)   a decrease in the price of pumpkins
C)   an increase in the wages paid to labor on pumpkin farms
D)   an increase in the price of sugar, a key ingredient in pumpkin pieE) None of the above
F) All of the above

Question 18

The law of supply states that:

Accepted Answer

A)   ceteris paribus, sellers respond to higher prices by lowering production.
B)   all else equal, the price of a good and the quantity supplied of a good are positively related.
C)   supply creates its own demand.
D)   buyer will purchase a good at whatever price the seller sets.E) B) and D)
F) All of the above

Question 19

Use the figure The Supply Curve II. The supply curve of a good has changed as shown in this graph in response to an increase in the price of another good. These two goods must be:
​
Figure: The Supply Curve II

Accepted Answer

A)   complements in production.
B)   complements in consumption.
C)   substitutes in production.
D)   substitutes in consumption.E) C) and D)
F) B) and D)

Question 20

_____ is the amount by which the price exceeds the marginal cost of each unit sold.

Accepted Answer

A)   Profit
B)   Marginal revenue
C)   Producer surplus
D)   Consumer surplusE) All of the above
F) B) and C)

Exam 4: Supply

Use the figure The Supply Curve. What is represented by the movement from point X to point Y? ​ Figure: The Supply Curve

Correct AnswerverifiedShow Answer

. Use the figure Producer Surplus in the Market for Marzipan. What is the minimum price that sellers must get to earn at least $9 in producer surplus? ​ Figure: Producer Surplus in the Market for Marzipan

Correct AnswerverifiedShow Answer

Use the figure The Supply Curve II. The supply curve of a good has changed as shown in this graph in response to an increase in the price of another good. These two goods must be: ​ Figure: The Supply Curve II

Correct AnswerverifiedShow Answer

_____ is the amount by which the price exceeds the marginal cost of each unit sold.

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. Use the figure Producer Surplus in the Market for Marzipan II. What is producer surplus at a price of $9 per pound? ​ Figure: Producer Surplus in the Market for Marzipan II

Correct AnswerverifiedShow Answer

What is the marginal cost of a good?

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An increase in the production of one good has led to an increase the supply of another good. What are these two goods?

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Which of the following does NOT cause the supply curve to shift to the left?

Correct AnswerverifiedShow Answer

. Use the figure Producer Surplus in the Market for Marzipan. Calculate producer surplus if the price of marzipan increases from $6.50 per pound to $9 per pound. ​ Figure: Producer Surplus in the Market for Marzipan

Correct Answerverified$16 - $7.50 = $8.50....View AnswerShow Answer

Good A and good B are complements in production. If the price of good A increases, then the _____ of good A increases, and the _____ of good B increases.

Correct AnswerverifiedShow Answer

. Use the figure Producer Surplus in the Market for Marzipan. Calculate producer surplus if the price of marzipan is $8 per pound. ​ Figure: Producer Surplus in the Market for Marzipan

Correct AnswerverifiedShow Answer

The law of supply states that:

Correct AnswerverifiedShow Answer

The difference between the price received from selling a product and the marginal cost of producing that product is called:

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What is a supply curve?

Correct AnswerverifiedShow Answer

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $0.50, how much total producer surplus is earned by these three sellers? ​

Correct AnswerverifiedShow Answer

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $8, how many mittens will Eliza supply, and how much producer surplus will Eliza earn? ​

Correct AnswerverifiedShow Answer

Suppose that ideal weather conditions, including optimal rainfall, have created an enormous soybean crop in the United States. How would this affect the supply of soybeans in the United States?

Correct AnswerverifiedShow Answer

Which of the following would shift the supply of pumpkin pie to the right?

Correct AnswerverifiedShow Answer

Use the table Marginal Cost of Producing Candles. What is the producer surplus earned on the second unit of production if the price of this good is $1.75? ​

Correct AnswerverifiedShow Answer

. Use the figure Producer Surplus in the Market for Marzipan I. What is producer surplus at a price of $5 per pound? ​ Figure: Producer Surplus in the Market for Marzipan I

Correct AnswerverifiedShow Answer

Use the figure The Supply Curve. What is represented by the movement from point X to point Y? Figure: The Supply Curve

Correct Answer
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. Use the figure Producer Surplus in the Market for Marzipan. What is the minimum price that sellers must get to earn at least $9 in producer surplus? Figure: Producer Surplus in the Market for Marzipan

Correct Answer
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Use the figure The Supply Curve II. The supply curve of a good has changed as shown in this graph in response to an increase in the price of another good. These two goods must be: Figure: The Supply Curve II

Correct Answer
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. Use the figure Producer Surplus in the Market for Marzipan II. What is producer surplus at a price of $9 per pound? Figure: Producer Surplus in the Market for Marzipan II

Correct Answer
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. Use the figure Producer Surplus in the Market for Marzipan. Calculate producer surplus if the price of marzipan increases from $6.50 per pound to $9 per pound. Figure: Producer Surplus in the Market for Marzipan

Correct Answer
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$16 - $7.50 = $8.50....
View Answer

Good A and good B are complements in production. If the price of good A increases, then the _ of good A increases, and the _ of good B increases.

Correct Answer
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. Use the figure Producer Surplus in the Market for Marzipan. Calculate producer surplus if the price of marzipan is $8 per pound. Figure: Producer Surplus in the Market for Marzipan

Correct Answer
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Correct Answer
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Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $0.50, how much total producer surplus is earned by these three sellers?

Correct Answer
verified

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $8, how many mittens will Eliza supply, and how much producer surplus will Eliza earn?

Correct Answer
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Correct Answer
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Correct Answer
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Use the table Marginal Cost of Producing Candles. What is the producer surplus earned on the second unit of production if the price of this good is $1.75?

Correct Answer
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. Use the figure Producer Surplus in the Market for Marzipan I. What is producer surplus at a price of $5 per pound? Figure: Producer Surplus in the Market for Marzipan I

Correct Answer
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