Chap 7

Question 1

Consumer Surplus falls to

Answer 1

the left of the demand curve

Question 2

Producer surplus falls to

Answer 2

the the left of the supply curve

Question 3

Producers want to be

Answer 3

low cost

Question 4

Consumers set the

Answer 4

price

Question 5

Willingness to pay

Answer 5

the maximum amount that a buyer will pay for a good

Question 6

Consumer surplus equals

Answer 6

a buyers willingness to pay minus the amount the buyer actually pays