33. What is total surplus? How is it illustrated on a demand and supply diagram?

34. What is the relationship between total surplus and economic efficiency?

35. What is deadweight loss?

Critical Thinking Questions

36. Review Figure 3.4. Suppose the government decided that, since gasoline is a necessity, its price should be

legally capped at $1.30 per gallon. What do you anticipate would be the outcome in the gasoline market?

37. Explain why the following statement is false: “In the goods market, no buyer would be willing to pay more

than the equilibrium price.”
82 3 • Problems

38. Explain why the following statement is false: “In the goods market, no seller would be willing to sell for

less than the equilibrium price.”

39. Consider the demand for hamburgers. If the price of a substitute good (for example, hot dogs) increases

and the price of a complement good (for example, hamburger buns) increases, can you tell for sure what
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