Consumer Surplus and Producer Surplus
Economics ⇒ Consumer and Producer Behaviour
Consumer Surplus and Producer Surplus starts at 12 and continues till grade 12.
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See sample questions for grade 12
Define consumer surplus.
Describe how a price ceiling below equilibrium price affects consumer and producer surplus.
Describe the effect of a price floor above equilibrium price on consumer and producer surplus.
Describe the effect of an increase in demand on consumer and producer surplus.
A consumer is willing to pay Rs. 100 for a product but buys it at Rs. 70. What is the consumer surplus?
A consumer is willing to pay Rs. 200 for a good, but the market price is Rs. 150. If the consumer buys 2 units, what is the total consumer surplus?
A market has a demand curve P = 100 - Q and a supply curve P = 20 + Q. Find the equilibrium price and quantity.
A market has a demand curve P = 120 - 2Q and a supply curve P = 40 + Q. Calculate the consumer surplus at equilibrium.
Which area on a standard demand and supply graph represents consumer surplus? (1) Area below the demand curve and above the price line, (2) Area above the demand curve and below the price line, (3) Area below the supply curve and above the price line, (4) Area above the supply curve and below the price line
Which of the following best describes producer surplus? (1) The difference between the market price and the minimum price at which a producer is willing to sell, (2) The total revenue earned by a producer, (3) The cost of production, (4) The profit earned by a producer
Which of the following is NOT a determinant of consumer surplus? (1) Consumer income, (2) Price of the good, (3) Cost of production, (4) Consumer preferences
Which of the following is true about producer surplus? (1) It is always positive, (2) It is the same as profit, (3) It is the difference between market price and minimum acceptable price, (4) It is the area below the demand curve
Fill in the blank: A deadweight loss occurs when the market is not at ______.
Fill in the blank: At equilibrium, total surplus is maximized when the market is ______.
Fill in the blank: Producer surplus is the area ______ the supply curve and ______ the market price.
Fill in the blank: The area between the demand curve and the price line up to the quantity sold represents ______ surplus.
State whether the following is true or false: Consumer surplus can be used to measure the benefit consumers receive from a government policy.
State whether the following is true or false: Deadweight loss represents the loss of total surplus due to market inefficiency.
State whether the following is true or false: Producer surplus can exist even if the producer is making a loss.
State whether the following statement is true or false: Producer surplus is a measure of producer welfare.
