Chapter 7
Consumers, Producers, and Efficient Markets
Blank Sheet Recall
What is the equation for consumer surplus?
What is the equation for producer surplus?
Draw a graph showing consumer surplus.
Now assume a lower price, show the area from additional buyers entering the
market AND the area from additional surplus for remaining buyers.
Draw a graph showing producer surplus.
What is the equation for total surplus?
When is a market considered efficient?
ANSWER: C
ANSWER: D
ANSWER: D
ANSWER: A
ANSWER: B
ANSWER: D
ANSWER: D
ANSWER: C
ANSWER: D
ANSWER: A
ANSWER: D