ECON 1000 Chapter Notes - Chapter 5: Economic Surplus, Demand Curve, Marginal Utility

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Market demand curve: shows the quantity demanded by all the people in the market. Market supply curve: horizontal sum of the individual supply curves and is formed by adding the quantities supplied by all the producers at each price. Market supply: relationship between the total quantity supplied of a good and its price. Market demand: relationship between price of good and quantity demanded by all buyers in the market. Market demand curve: horizontal sum of individual demand curves. Marginal benefit: maximum price that is willingly paid for another unit of the good or service. Marginal social benefit: benefit that the entire society receives, which is the sum of the marginal benefits that the people in the society receive. Demand curve: marginal benefit curve, so the demand schedule tells us the maximum price willingly paid at each quantity demanded. Marginal social cost: cost to the entire society. Market supply curve: is the marginal social cost curve.

Related Questions

Perfect competition achieves efficiency if the market produces the quantity at which _______.

A) producer surplus equals zero
B) consumer surplus is greater than producer surplus
C) marginal benefit is greater than marginal cost
D) the consumers' marginal benefit from the good equals the marginal cost of producing it

redcattle972

Perfect competition achieves efficiency if the market produces the quantity at which _______.

redcattle972

1. Consumer surplus is not

a. the value of a good minus the price paid for it, summed over the quantity bought.

b. greater on the first unit sold than on the last unit sold.

c. greater on the last unit sold than on the first unit sold.

d. equal to the area below the demand curve and above the market price line.

2. The demand curve for hamburgers is the same as the

a. marginal benefit curve for hamburgers.

b. marginal cost curve of hamburgers.

c. consumer surplus curve of hamburgers.

d. All of the above.

3. A supply curve is

a. the same as a production possibilities frontier.

b. a marginal social benefit curve.

c. a marginal benefit curve.

d. a marginal cost curve.

e. a downward-sloping curve.

4. The opportunity cost of producing one more hot dog is $1.00. The price of a hot dog is $1.50. The producer surplus from selling one more hot dog is

a. $1.00

b. $1.50

c. $0.50

d. zero.

e. $2.50

5. Markets may not achieve an efficient allocation of resources when there are

a. external costs.

b. monopolies.

c. taxes.

d. all of the above.

ECON 1000 Chapter Notes - Chapter 5: Economic Surplus, Demand Curve, Marginal Utility

ECON 1000 Full Course Notes

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