Table 7-5
For each of three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Alex, Barb, and Carlos are the only three buyers of oranges, and only three oranges can be supplied per day.
Alex
First Orange
$2.00
Second Orange
$1.50
Third Orange
$0.75
Barb
Carlos
$1.50
$0.75
$1.00
$0.25
$0.80
$0
____ 1. Refer to Table 7-5. If the market price of an orange is $0.70, the market quantity of oranges demanded per day is a. 5. b. 6. c. 7. d. 9.
____ 2. Refer to Table 7-5. Who experiences the largest loss of consumer surplus and how much do they lose when the price of an orange increases from $0.70 to $1.40? (Fill-in)
Who has the largest loss______________________
Amount that they lose ____________________
Figure 7-13
Price
J Supply
K N
L
M
R
Demand
Quantity
____ 3. Refer to Figure 7-13. For quantities greater than M, the value to the marginal buyer is a. greater than the cost to the marginal seller, so increasing the quantity increases total surplus. b. less than the cost to the marginal seller, so increasing the quantity increases total surplus. c. greater than the cost to the marginal seller, so decreasing the quantity increases total surplus. d. less than the cost to the marginal seller, so decreasing the quantity increases total surplus.

Figure 7-17
Price
20
16
12
8
C
4
48
44
A
40
36
32
F
28
24
H
G
K
Supply
B
Demand
1 2 3 4 5 6 7 8 9 10 11
Quantity
____ 24. 4. Refer to Figure 7-17 . At equilibrium, total surplus is measured by the area a. ACG. b. AFG. c. KBG. d. CFG.
____ 25. 5. Market power refers to the a. side effects that may occur in a market. b. government regulations imposed on the sellers in a market. c. ability of market participants to influence price. d. forces of supply and demand in determining equilibrium price.