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

A flat rectangular loop of wire is placed between the poles of a magnet. It has dimensions w = 0.60 m and L = 1.0 m, and carries a current I = 2.0 A. The magnetic field due to the magnet is uniform and of magnitude 0.80 T. The loop rotates in the magnetic field and at one point the plane of the loop makes a 30° angle with the field. At that instant, what is the magnitude of the torque acting on the wire due to the magnetic field?

A tax on buyers would have the exact same impact on a market as if you placed the tax on sellers.

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

When government imposes price ceilings and floors in markets,

Willingness to pay is the minimum amount a buyer will pay for a good, and it measures how much the buyer values the good.

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

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?

The only four consumers in a market have the following willingness to pay for a good: Buyer                          willingness to pay Carlos                               $25 Quilana                             $35 Wilbur                               $15 Ming-la                              $45 If the price is 30, then consumer surplus in the market is

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.