In Figure 6 1 the consumer surplus is equal to AJ 400 B 300 C 200 D 100 24 If the good in Figure 6 1 were free A consumer

Question

In Figure 6 1 the consumer surplus is equal to AJ 400 B 300 C 200 D 100 24 If the good in Figure 6 1 were free A consumer surplus would equal 450 and consumer expenditure would be 50 B consumer surplus and consumer expenditure would both be maximized C consumer surplus and consumer expenditure would both be zero D consumer surplus would be maximized but consumer expenditure would be impossible to calculate 25 As price falls along a particular demand curve consumer surplus A decreases rapidly B decreases by a very small amount C remains constant D increases 26 A market equilibrium will generate the largest possible surplus when A there are no external benefits and external costs B there is perfect competition C perfect information is available D all of the above 27 Buyers and sellers acting in their own best interest generate outcomes that are in society s best in when all of the following are true EXCEPT A buyers and sellers are informed B markets are efficient C there are no external benefits D there are no external costs AC AC

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