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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

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