At Nick’s Bakery, the cost to make homemade chocolate cake is $4 per cake. As a result of selling a cake, Nick gets $10 of producer surplus. How much is Nick selling cakes for?

Consider the following market. How would the market be affected if the government imposed a price ceiling of $7?

In the lecture, we discussed why the Benevolent Social Planner would choose not to allocate a portion of the good to some potential buyers even though they place a positive value on the good. Why would the Benevolent Social Planner choose to allocate none to these consumers?

Total surplus is the area under the demand curve and above the supply curve.

Chad is willing to pay $4.00 to get his first cup of morning coffee. He buys a cup from a vendor selling coffee and gets $1.75 of consumer surplus. Chad paid ______ for the cup of coffee. 

When government imposes price ceilings and floors in markets,

Consider the following picture of a demand curve. How much does consumer surplus change by when the price rises from P1 to P2? 

A proton having a speed of 3.0 × 10^6 m/s in a direction perpendicular to a uniform magnetic field moves in a circle of radius 0.20 m within the field.  What is the magnitude of the magnetic field? (e = 1.60 × 10^-19 C, mproton = 1.67 × 10^-27 kg)

Suppose that supply is more elastic than demand. Which of the following can you conclude?

Consider the gasoline market. If the price of crude oil, an input in the production of gasoline, falls, what effect will this have on consumer surplus in the gasoline market? (Hint: Draw the demand and supply curves, identify CS and PS, shift the appropriate curve, and then see which answer is correct).