Question

Question 14 (1 point) Total willingness to pay describes the willingness to pay for one more unit of a good or service. True False Question 15 (1 point Price of tao ride $8 40 60 80 Quantity of taxi ndes Refer to the above diagram. if the price of a taxi ride increases from $6 to $8, producer surplus for this taxi driver will frise, fall) by Include the $ sig n and separate your two answers on ly with a comma and no space. For example if your answer is' fall by $60.50', show this as fall, $60.50. If your answer is Eighty dollars, shovw this as $80 (with no decimal or ze ros)

Answer 1

14.

True

Reason: Total willingness to pay refers to the maximum amount a consumer is willing to pay to buy one more additional unit of the good.

15. Rise,$140

When price is $6,

Producer surplus = (1/2)(6)(60) = $180

When price is $8,

Producer surplus = (1/2)(8)(80) = $320

Thus, increase in producer surplus = $320-$180 = $140