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. 

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

When government imposes price ceilings and floors in markets,

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

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

Based on the tax imposed in this picture, what is the deadweight loss created by the tax?

The minimum wage is an example of

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 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).

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