Practice Questions

 

  1. You are willing to pay $200 for a daylong admission ticket to a theme park. The cost of the ticket is $120. Your consumer surplus is: *
    1. $0
    2. $80
    3. $120
    4. $320

  2. A limited edition package is sold only to 200 customers for $130 each. The average value of the package for the 200 customers is $280. What is the total consumer surplus? *
    1. $150
    2. $15,000
    3. $30,000
    4. $150,000

  3. What should we expect to happen if the consumer surplus of a trade is negative? *
    1. The consumer gains no value from the trade.
    2. The consumer loses value from the trade.
    3. The consumer's gain from trade is the absolute value of the consumer surplus.
    4. The trade does not happen.