Chapter 7/Consumers, Producers, and the Efficiency of Markets ? 497
47. Refer to Figure 7-8. If the supply curve is S and the demand curve shifts from D to D’, what is the change
in producer surplus?
a. Producer surplus increases by $3,125. b. Producer surplus increases by $5,625. c. Producer surplus decreases by $3,125. d. Producer surplus decreases by $5,625.
ANS: A
NAT: Analytic MSC: Analytical
DIF: 3 REF: 7-2 LOC: Supply and demand
TOP: Producer surplus
48. Refer to Figure 7-8. If the supply curve is S and the demand curve shifts from D to D’, what is the increase
in producer surplus to existing producers? a. $625 b. $2,500 c. $3,125 d. $5,625
ANS: B
NAT: Analytic MSC: Analytical
DIF: 3 REF: 7-2 LOC: Supply and demand
TOP: Producer surplus
49. Refer to Figure 7-8. If the supply curve is S and the demand curve shifts from D to D’, what is the increase
in producer surplus due to new producers entering the market? a. $625 b. $2,500 c. $3,125 d. $5,625
ANS: A
NAT: Analytic MSC: AnalyticalFigure 7-9
2502252001751501251007550252550PriceDIF: 3 REF: 7-2 LOC: Supply and demand
TOP: Producer surplus
S75100125150Quantity50. Refer to Figure 7-9. If the equilibrium price is $50, what is the producer surplus?
a. $625 b. $3,750 c. $5,625 d. $10,000
ANS: A
NAT: Analytic MSC: Analytical
DIF: 2 REF: 7-2 LOC: Supply and demand
TOP: Producer surplus
498 ? Chapter 7/Consumers, Producers, and the Efficiency of Markets
51. Refer to Figure 7-9. If the equilibrium price is $200, what is the producer surplus?
a. $625 b. $3,750 c. $10,000 d. $20,000
ANS: C
NAT: Analytic MSC: Analytical
DIF: 2 REF: 7-2 LOC: Supply and demand
TOP: Producer surplus
52. Refer to Figure 7-9. If the equilibrium price rises from $50 to $200, what is the additional producer surplus
to initial producers? a. $625 b. $3,750 c. $5,625 d. $10,000
ANS: B
NAT: Analytic MSC: Analytical
DIF: 3 REF: 7-2 LOC: Supply and demand
TOP: Producer surplus
53. Refer to Figure 7-9. If the equilibrium price rises from $50 to $200, what is the producer surplus to new
producers? a. $625 b. $3,750 c. $5,625 d. $10,000
ANS: C
NAT: Analytic MSC: Analytical
DIF: 3 REF: 7-2 LOC: Supply and demand
TOP: Producer surplus
Chapter 7/Consumers, Producers, and the Efficiency of Markets ? 499
Figure 7-10
Price170160150140130120110100908070605040302010123456789101112131415161718192021222324SD25Quantity54. Refer to Figure 7-10. At the equilibrium price, producer surplus is
a. $200. b. $400. c. $450. d. $900.
ANS: A
NAT: Analytic MSC: Analytical
DIF: 3 REF: 7-2 LOC: Supply and demand
TOP: Producer surplus
55. Refer to Figure 7-10. If the government imposes a price ceiling of $70 in this market, then the new
producer surplus will be a. $50. b. $100. c. $175. d. $350.
ANS: A
NAT: Analytic MSC: Analytical
DIF: 3 REF: 7-2 LOC: Supply and demand
TOP: Producer surplus
56. Refer to Figure 7-10. If the government imposes a price ceiling of $70 in this market, then producer surplus
will decrease by a. $50. b. $125. c. $150. d. $200.
ANS: C
NAT: Analytic MSC: Analytical
DIF: 3 REF: 7-2 LOC: Supply and demand
TOP: Producer surplus
500 ? Chapter 7/Consumers, Producers, and the Efficiency of Markets Figure 7-11
PriceSupplyP2AP1CGBDQ1Q2Quantity57. Refer to Figure 7-11. When the price is P2, producer surplus is
a. A. b. A+C. c. A+B+C. d. D+G.
ANS: C
NAT: Analytic MSC: Applicative
DIF: 2 REF: 7-2 LOC: Supply and demand
TOP: Producer surplus
58. Refer to Figure 7-11. When the price is P1, producer surplus is
a. A. b. C. c. A+B. d. C+D.
ANS: B
NAT: Analytic MSC: Applicative
DIF: 2 REF: 7-2 LOC: Supply and demand
TOP: Producer surplus
59. Refer to Figure 7-11. When the price falls from P2 to P1, producer surplus
a. decreases by an amount equal to C. b. decreases by an amount equal to A+B. c. decreases by an amount equal to A+C. d. increases by an amount equal to A+B.
ANS: B
NAT: Analytic MSC: Applicative
DIF: 2 REF: 7-2 LOC: Supply and demand
TOP: Producer surplus
60. Refer to Figure 7-11. When the price rises from P1 to P2, what area represents the increase in producer
surplus? a. A b. A+B c. A+B+C d. G
ANS: B
NAT: Analytic MSC: Applicative
DIF: 2 REF: 7-2 LOC: Supply and demand
TOP: Producer surplus