Home→ Economics Mcqs → Surplus →Consumer surplus is the area ?

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 ?
A buyer’s willingness to pay is that buyer’s ?
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. below the demand curve and above the price.
B. above the supply curve and below the price.
C. above the demand curve and below the price.
D. below the supply curve and above the price.
E. below the demand curve and above the supply curve

Correct Answer: below the demand curve and above the price. ✔

Last Updated: June 18, 2019