Home→ Economics Mcqs → Surplus →A buyer’s willingness to pay is that buyer’s ?

If a market generates a side effect or externlity then free market solutions ?
If a producer has market power (can influence the price of the product in the market) then free market solutions ?
If buyers are rational and there is no market failure ?
Adam smith’s invisible hand concept suggests that a competitive market outcome ?
Suppose that the price of a new bicycle is Rs300 Natalie values a new bicycle at Rs 400 it costs Rs200 for the seller to produce the new bicycle. What is the value of total surplus if Natalie buys a new bike ?
The seller’s cost of production is ?
If a benevolent social planner chooses to producer less than the equilibrium quantity of a good, then ?
Producer surplus is the area ?
An increase in the price of a good along a stationary demand curve ?
Jamil has ten pairs of football boots and saleem has none. A pair of football boots cost Rs50. to produce. If jamil values an additional pair of boots at RS100 and saleem values a pair of boots at Rs40, then the maxime ?
Medical care clearly enhance people’s lives. Therefore, we should consume medical care until ?
If a market is efficient then_______?
In general, if a benevolent social planner wanted to maximize the total benefits received by buyers and sellers in a market, the planner should?
An increase in the price of a good along a stationary supply curve__________?
Total surplus is the area__________?
If a benevolent social planner chooses to produce more than the equilibrium quantity of a good, then ?
Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay Rs30 for one, buyer 2 is willing to pay Rs25 for one, and buyer 3 is willing to pay Rs20 for one. If the price is Rs25, how many vases will be sold and what is the value of consumer surplus in this market ?
If a buyer’s willingness to pay for a new Honda is Rs20,000 and she is able to actually buy it for Rs18,000 her consumer surplus is ?
Consumer surplus is the area ?

A buyer’s willingness to pay is that buyer’s ?

A. minimum amount they are willing to pay for a good
B. producer surplus.
C. consumer surplus
D. maximum amount they are willing to pay for a good
E. none of these answers

Correct Answer: maximum amount they are willing to pay for a good ✔

Last Updated: June 18, 2019