[Solved] Suppose That a Market Is in Equilibrium

In a perfectly competitive industry at equilibrium price and quantity that the A)producer surplus exceeds the consumer surplus. B)consumer and producer surplus is maximized. C)consumer surplus exceeds producer surplus. D)willingness of consumers to pay exceeds the opportunity cost of producing the product.

The cumulative difference between what buyers are willing to pay and the price they actually pay is A)producer surplus. B)deadweight loss. C)total economic surplus. D)conspicuous consumption. E)consumer surplus.

The cumulative difference between the price producers actually receive and the price they are willing to produce for is A)producer surplus. B)deadweight loss. C)total economic surplus. D)conspicuous consumption. E)consumer surplus.

The sum of the economic surpluses accruing to buyers and sellers is A)producer surplus. B)deadweight loss. C)total economic surplus. D)conspicuous consumption. E)consumer surplus.

Suppose that a market is in equilibrium.The area between the demand curve and the market price is A)total economic surplus. B)producer surplus. C)consumer surplus. D)the deadweight loss. E)the degree of overconsumption.

Economic surplus is A)the ratio of consumer surplus to producer surplus. B)the difference between consumer surplus and producer surplus. C)the difference between tax revenue and government expenditure. D)the sum of consumer surplus and producer surplus. E)minimized at the point of market equilibrium.

Consumer surplus is the value of A)consumer spending on frivolous goods. B)the cumulative difference between what consumers are willing to pay and the price they actually pay. C)the difference between the suggested retail price and the everyday low price. D)the difference between the list price and the price the consumer can negotiate. E)making bulk purchases.

Producer surplus is the A)cumulative difference between the price producers receive and the price they require in order to produce. B)difference between the brand name price and the generic brand price. C)difference between the suggested retail price and the actual cost. D)value of the mark-up over price. E)value of extra sales generated by loss leaders.

-Refer to the diagram above.When quantity supplied and quantity demanded are equal,consumer surplus is equal to A)$600. B)$1,200. C)$1,400. D)$2,000. E)$2,400.

-Refer to the diagram above.When quantity supplied and quantity demanded are equal,producer surplus is equal to A)$600. B)$1,200. C)$1,400. D)$2,000. E)$2,400.