Sapling Chapter 4 HW Flashcards

What is total consumer surplus for the five students?

If the price increases from $150 to $350, what is the change in total consumer surplus?

What is consumer surplus?

How is consumer surplus shown graphically?

What is producer surplus?

How is producer surplus shown graphically?

What is Alice's consumer surplus from buying jeans priced at $35 with a coupon of $10?

What is Jeff's consumer surplus when he buys steaks for $16 that he was willing to pay $20?

What is Nicole's producer surplus for selling a hockey puck if the winning bid is $500?

What is Claire's producer surplus selling a textbook for $125 when her minimum price was $100?

What is Roy's consumer surplus when he decides not to buy a sports drink priced at $2.79?

What is the number of flush toilets desired at the equilibrium point?

What is the total surplus when flush toilets are analyzed?

Will the managers install the number of flush toilets determined in Question 1?

What is the change in total surplus due to trades between TIMBER and the towns?

What is the outcome of Klaus selling wood to Mayflair for $40?

Consumer Surplus and Producer Surplus

Total consumer surplus for five students is $800 at a price of $150 for a tablet.
If the tablet's price rises to $350, total consumer surplus decreases by $600.

Consumer Surplus Definition

Consumer surplus is the difference between the maximum price a buyer is willing to pay and the actual market price.
Graphically, consumer surplus is represented as the area under the demand curve and above the market price.

Producer Surplus Definition

Producer surplus is defined as the difference between the market price and the minimum price a seller is willing to accept.
Graphically, producer surplus appears as the area above the supply curve and below the market price.

Scenarios of Surplus Calculation

Alice's consumer surplus is $5 after purchasing jeans priced at $35 with a $10 coupon.
Jeff's consumer surplus is $16 after purchasing steaks initially priced at $20 but discounted heavily.
Nicole's producer surplus is $0 from selling a hockey puck; the last bid meets her minimum price.
Claire earns a producer surplus of $25 selling a calculus textbook for $125, being willing to sell for $100.
Roy has a consumer surplus of $0 because he does not purchase a drink priced higher than his willingness to pay.

MooseWoods Park Toilet Installation Decision

The determined equilibrium number of flush toilets is 4.
Total surplus at this equilibrium point is $60.
Managers will install the determined number of flush toilets since the total surplus exceeds the $50 threshold.

Trade and Total Surplus in Catan

Teuber and Mayflair have different willingness to pay for wood ($50 and $45 respectively) while TIMBER sets the price at $60, leading to no trade and zero change in total surplus.
Klaus sells wood to Mayflair for $40 instead of Teuber for $45, leading to an increase in total surplus although the market remains inefficient.

This quiz focuses on Chapter 4 of the Sapling Homework, covering concepts of consumer surplus and market pricing. It includes scenarios involving price changes and student willingness to pay for a tablet. Test your understanding of these economic principles through engaging flashcard questions.