1.Consumer surplus equals
minus
.
2. Producer surplus equals
minus
.
3. In Figure 21.1 on page 463, Tupak’s consumer surplus is
, compared to
for Thurl. s
4. In Figure 21.1 on page 463, Tupak’s consumer surplus is
(greater/less) than Thurl’s because Tupak has
a (lower, higher) willingness to pay.
fig 21.1
5. In Figure 21.2 on page 464, Bea’s producer surplus is(greater/less) than Dee’s because Dee has a(lower, higher) marginal cost of production.
fig. 21.2
6. As the market price decreases, consumer surplus(increases/decreases) and producer surplus
(increases/decreases).
7. For a given market price, a consumer who is on the high end of the demand curve has a
consumer surplus than a consumer on the low end of the demand curve.
8.For Japanese consumers, the average consumer surplus for Internet service is per month. (Related to Application 1 on page 465.)
9. Consider the demand for Internet service in Japan. Assume that the demand curve is linear, the monthly price is ¥4,000, and the equilibrium number of consumers is 100 million. For the average consumer, show willingness to pay and the consumer surplus. (Related to Application 1 on page 465.)