Question

1. If the demand for a good becomes less elastic without any change in the equilibrium price or quantity sold, consumer surplus in that market most likely

		rises.
		falls.
		doesn't change, since price and quantity don't change.
		changes, but in a direction that cannot be determined.
		none of the above.

2. Most of the marginal damage from US car travel in metropolitan areas is from

		wear and tear of roads and bridges.
		pollution.
		congestion and reduced safety.
		another source.
		These marginal damages are all about equal, so none of them is the source of ``most" of the marginal damage.

3. Most of the marginal damage from US semi truck travel (total travel) is from

		wear and tear of roads and bridges.
		pollution.
		congestion and reduced safety.
		another source.
		These marginal damages are all about equal, so none of them is the source of ``most" of the marginal damage.

Answer 1

Answer 1 Consumer surplus is defined as the difference between the consumers' willingness to pay for a commodity and the actual price paid by them, or the equilibrium price.

Elasticity refers to the degree of responsiveness in supply or demand in relation to changes in price. If a curve is more elastic, then small changes in price will cause large changes in quantity consumed. If a curve is less elastic, then it will take large changes in price to effect a change in quantity consumed.

Hence consumer surplus Does not change as quantity and price remains the same

Answer 2 pollution

The theory of welfare economics
shows that one of the conditions for achieving maximum economic efficiency is that all prices throughout an economy be set equal to marginal social costs.
This means that optimal prices should include all resource costs and external costs (congestion, air pollution, accidents, noise,etc.).

In metropolitan area maximum marginal damage is caused by pollution

Answer 3

wear and tear of roads and bridges