Spilled Coffee Teacher Key: Market Welfare Digital Breakout

Game URL: https://tinyurl.com/SpilledCoffeeBreakout

Email if you have questions: [email protected]
Game Overview: Dr. Scarcity is a disgruntled economics teacher who loves making her students
miserable. While grading a set of tests covering Market Welfare, she spilled her giant mug of coffee
all over the answer key. Angry and caffeine deprived, she has placed the blame on YOU and is
threatening to fail everyone. Work through the challenges to help Dr. Scarcity “rediscover” the
answer key or you’ll be doomed to repeat her course! And, for heaven’s sake, refill her coffee!

Lock #1: 740

Lock Clue: An entire section of the exam was inspired by Dr. Scarcity’s coffee purchases this year.
The answer key was ruined, but she was able to dig up SUM old receipts… Can you determine SUM
of these calculations to figure out the lock combination?

1. Calculate the area of producer surplus.

2. Calculate the area of consumer surplus.
3. Calculate the area of total surplus.
4. Demand increased. Calculate the change in
total surplus.

Lock Explanation: Students must notice the different color circles on the receipts (green and
orange). These correspond to the colors in the graphs and questions. Students must find the
equilibrium prices on the receipts; the receipt with the green dot has the price for P1, and the receipt
with the orange dot has the price for P2. Questions 1, 2, and 3 are in green as a hint that students
should calculate these using P1. Question 4 is in orange, indicating students should use P2 to
calculate this answer. The lock set up repeats the word SUM as a clue that students should add up all
the answers to find the lock combination.

1. Calculate the area of producer surplus. With a price of $1 and a quantity of 60, PS = ($1x60)/2
= $30.
2. Calculate the area of consumer surplus. The demand curve hits the price axis at $8 and P1 =
$1. CS = ($7x60)/2 = $210
3. Calculate the area of total surplus. TS = PS + CS = $30 + $210 = $240
4. Demand increased. Calculate the change in total surplus. The original TS = $240 and the new
TS = $500. It increased by $260.
a. Calculation for new CS: P2 = $2 and the new quantity is 100. The new demand curve
hits the price axis at $10, so CS = (8x100)/2 = 400.
b. Calculation for new PS: (2x100)/2 = 100
 c. Calculation for new TS: new CS + new PS = 400 + 100 = 500

Add all the answers together: $30 + $210 + $240 + $260 = $740
Lock #2: Down, Down, Down, Up, Down

Lock Clue: You’ll need to DIRECT yourself through this next set of exam questions…

Recently, high school teachers across the country have complained about long hours and exhaustion
from dealing with teenagers all day. Fearing a massive teacher shortage, politicians brainstormed
what they felt was the perfect solution - a price ceiling placed on the market for coffee! If these
delicious, caffeinated beverages were more affordable, teachers would be able to fend off exhaustion
and remain happy in their job.

After the price control is placed...

1. Where would this price control be placed to be binding? UP above equilibrium or DOWN
below?
2. What happens to producer surplus?
3. What happens to total surplus?
4. Does the market for coffee end UP with a shortage or does efficiency go DOWN with a
surplus?
5. The original intention of the price control was to increase the amount of coffee consumed by
teachers. What happens to the quantity of coffee bought and sold after the price control is
placed?

Lock Explanation:

1. Where would this price control be placed to be binding? UP above equilibrium or DOWN
below? Down: This is a price ceiling, so it must be placed below equilibrium to have
any kind of effect.
2. What happens to producer surplus? Down: Producer surplus will decrease since the
price is legally set lower than equilibrium.
3. What happens to total surplus? Down: Price controls cause deadweight loss, so total
surplus will decrease.
4. Does the market for coffee end UP with a shortage or does efficiency go DOWN with a
surplus? Up: When the price is legally set below equilibrium, quantity demanded will
exceed quantity supplied. We end up with a shortage.
5. The original intention of the price control was to increase the amount of coffee consumed by
teachers. What happens to the quantity of coffee bought and sold after the price control is
placed? Down: The quantity of coffee bought and sold equals the quantity supplied
at the price ceiling price.

Lock #3: APBEBAAZTM

Lock Clue: Dr. Scarcity was really emotional while

making this section of the exam. Hopefully, you can help
her remember the answers. HINT: More than one emoji
for an answer or dealing with a quantity? Think
alphabetically!

The graph to the left shows a tax placed on the market

for coffee.

1. Producer surplus after the tax?

2. Consumer surplus after the tax?
3. Deadweight loss from the tax?
4. Size of the excise tax?
5. Amount of the tax the consumers pay per unit of coffee bought?
6. Amount of the tax the producers pay per unit of coffee sold?
7. Amount of government revenue from the tax?
8. BEFORE tax quantity of coffee purchased?
9. AFTER tax quantity of coffee purchased?

Lock Explanation: The lock set up mentions Dr. Scarcity’s emotions, hinting that the emojis are
important in solving this lock. Students are also reminded to think alphabetically as they work
through the questions. This is because some of the answers include more than one emoji, and
students will need to place them in order alphabetically. Also, the last several questions involve
calculating a quantity; students will need to figure out which letter of the alphabet corresponds to
each numerical answer. For example, A = 1, B = 2 … Z = 26.

1. Producer surplus after the tax? Alien

2. Consumer surplus after the tax? Poop
3. Deadweight loss from the tax? Bone and Eye
4. Size of the excise tax? Students will need to use the price axis to determine the size of the excise
tax, $2. The second letter in the alphabet is B.
5. Amount of the tax the consumers pay per unit of coffee bought? Consumers pay $1 (the
difference between the price buyers pay and equilibrium price), and the first letter in the alphabet
is A.
6. Amount of the tax the producers pay per unit of coffee sold? Producers pay $1 (the difference
between equilibrium price and the price sellers receive), and the first letter in the alphabet is A.
7. Amount of government revenue from the tax? Students must notice that the question asks for an
amount; they should calculate this answer as opposed to using the emojis. They do this by
multiplying the size of the excise tax by the quantity sold: $2 x 13 = $26. The 26 th letter in the
alphabet is Z.
8. BEFORE tax quantity of coffee purchased? This would be the equilibrium quantity of 20. The 20 th
letter in the alphabet is T.
9. AFTER tax quantity of coffee purchased? The after-tax quantity is 13, and the 13 th letter in the
alphabet is M.

Lock #3: APBEBAAZTM

Lock Clue: Visit the linked YouTube video. Learn the song then stand up and sing it. If your teacher
is pleased with your singing performance, you’ll receive a set of questions that hold the answer to
this lock combination.

https://www.youtube.com/embed/ef0CxFtNK_A

Link to the questions: https://drive.google.com/file/d/1tGYZi8E19t8qdPbf9OtKbPUu2pE_qxPO/view?usp=sharing

OR, create your own but make sure the answers are in the same spot.

1. Consumer surplus is the

a. price of a good minus what the consumer was willing to pay.
b. surplus of goods the consumer has after consuming all she needs.
c. excess number of goods consumers purchase over and above what they really need.
d. difference between what the consumer is willing to pay for a good and the
price.

2. The consumer surplus can be expressed graphically as the area

 a. to the right of the demand curve.
b. between the supply curve and the demand curve.
c. above the supply curve and below the price of the good.
d. below the demand curve and above the price of the good.

3. The producer surplus is the

a. cost of production minus the price a producer pays.
b. price of a good minus what the consumer was willing to pay.
c. difference between the price a producer receives and the cost of production.
d. difference between what the consumer is willing to pay and what the consumer has to
pay.

4. The producer surplus can be expressed graphically as the area:

a. to the right of the demand curve.
b. between the supply curve and the demand curve.
c. above the supply curve and below the price of the good.
d. below the demand curve and above the price of the good.

5. Demand for candy increases. What happens to producer surplus?

a. It increases.
b. It decreases.
c. It remains the same.
d. This cannot be determined without specific quantities.

6. When there is a technological advance in the ice cream industry, consumer surplus in that
market will
a. increase.
b. decrease.
c. not change, seeing as technology affects producers, not consumers.
d. This cannot be determined without specific quantities.

7. Dr. Scarcity is in the market for a new Keurig coffee machine. She values the new Keurig at
$200. The actual price of the Keurig machine is $150. Dr. Scarcity
a. buys the machine and experiences $50 in consumer surplus.
b. buys the machine and experiences $350 in consumer surplus.
c. doesn’t buy the machine and experiences $0 in consumer surplus.
d. doesn’t buy the machine and experiences $150 in consumer surplus by saving her
money.

8. Total surplus is
a. consumer surplus minus producer surplus
b. producer surplus minus consumer surplus
c. the sum of producer and consumer surplus
d. when producer and consumer surplus are equal

9. Market welfare is maximized when

a. supply is at its highest.
b. demand is at its highest.
c. there is a surplus of goods.
d. the market is in equilibrium.

Lock #5: green, blue, red, black, purple

Lock Clue: You've figured out the answer key for the exam, but you have one last challenge! Help
Dr. Scarcity refill her coffee cup! She really loves iced coffee but forgets how to make it...

Drink it cold.
Start doing a million things.
Become a teacher.
Bring hot coffee to school.
Forget you brought coffee.

Lock Explanation: Students must put the statements in sequential order then enter the color of the
statements in that same order.

Become a teacher. (green)

Bring hot coffee to school. (blue)
Start doing a million things. (red)
Forget you brought coffee. (black)
Drink it cold. (purple)