Consumer and Producer Surplus

10 terms by Sarah12121212 

Create a new folder

Advertisement Upgrade to remove ads

Willingness to pay (p.110)

the maximum price a consumer is prepared to pay for a good

Individual consumer surplus (p.112)

the net gain to an individual buyer from the purchase of a good; equal to the difference between the buyer's willingness to pay and the price paid

Total consumer surplus (p.112)

the sum of the individual consumer surpluses of all the buyers of a good

Consumer surplus (p.112)

a term often used to refer both to individual consumer surplus and to total consumer surplus

Cost (p.117)

(of potential seller) the lowest price at which a seller is willing to sell a good

Individual producer surplus (p.117)

the net gain to an individual seller from selling a good; equal to the differences between the price received and the seller's cost

Total producer surplus (p.118)

the sum of the individual producer surpluses of all the sellers of a good

Producer surplus (p.118)

a term often used to refer both to individual producer surplus and to total producer surplus

Total surplus (p.121)

the total net gain to consumers and producers from trading in a market; the sum of the consumer surplus and the producer surplus

Market failure (p.125)

occurs when a market fails to be efficient

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set