Problem 1: If the price of a good rises, then producer surplus
a. will increase
b. will decrease
c. will remain the same
d. may change but we can't tell how
Problem 2: If there is an increase in demand, total surplus
a. will increase
b. will decrease
c. will remain the same
d. may change but we can't tell how
Problem 3: If there is a decrease in supply, total surplus
a. will increase
b. will decrease
c. will remain the same
d. may change but we can't tell how
Problem 4: If the government imposes a price floor in the market for grapefruit, total surplus
a. will increase
b. will decrease
c. will not change
d. may change but we cannot determine the change without more information
Problem 5: If the government removed the excise tax on gasoline, which of the following would not occur?
a. Consumer surplus would increase
b. Producer surplus would increase
c. Producer surplus would decrease
d. Total surplus would increase.