Practice Consumer And Producer Surplus (10) - Microeconomics - IB 10 Individuals & Societies

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10 questions

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6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
4 questions · about 3 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is consumer surplus?
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Think of a good deal you got.
Question 2.
Define producer surplus.
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Consider prices a seller is happy with.
3Question 3.
What is consumer surplus?
- A measure of total output
- The difference between what consumers are willing to pay and what they actually pay
- The amount of resources allocated by the government
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Relate it to a shopping experience.
4Question 4.
True or False: Producer surplus can decrease with the imposition of taxes.
- True
- False
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Think about the economic impact of taxes on selling prices.
Question 5.
A company receives a government subsidy, allowing it to produce and sell a good for $50, but its minimum price was $70. Analyze the effect on producer surplus.
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Consider the balance between supply and demand.
Question 6.
Illustrate how an increase in demand could affect both consumer and producer surplus in a specific market. Support your answer with graphs.
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Graph the initial and new equilibrium points.

6 more questions in this section. Enroll free to practise them all.