Question

Consumer surplus for beer will increase if the demand for beer _________ or the price of beer ________.

a.	increases; increases	b.	increases; decreases
c.	decreases; decreases	d.	decreases; increases

Which of the following is the result with the greater the minimum price the producer is willing to accept, relative to the price received?

a.	The greater the producer surplus	b.	The greater the consumer surplus
c.	The smaller the consumer surplus	d.	The smaller the producer surplus

Ken buys goods but stops before his consumer surplus is maximized. We can conclude that he would receive a _________ on the next unit purchased.

a.	maximum surplus	b.	positive surplus
c.	negative surplus	d.	surplus of zero

The excess burden of a tax is that part of consumer and producer surplus that is _______ due to ___________ in equilibrium quantity.

a.	gained; an increase	b.	gained; a decrease
c.	lost; a decrease	d.	lost; an increase

Answer 1