Chapter 7 - Consumers, Producers, and the Efficiency of Markets

Marginal sellers

________ are the first to leave markets if the prices are lower.

Equality

________: the property of distributing economic prosperity uniformly among the members of society.

Willingness

________ to pay: the maximum amount that a buyer will pay for a good.

Consumer surplus

________: the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

Free markets

________ choose sellers depending upon who produces goods at the lowest cost.

Welfare economics

________: the study of how the allocation of resources affects economic well- being.

Efficiency

________: the property of a resource allocation maximizing the total surplus received by all members of society.

Producer surplus

________: the amount a seller is paid for a good minus the seller's cost of providing it.

Benevolent Social Planner

The ________ is a powerful, well- intentioned dictator.

Total surplus

________= (vale to buyers- the amount paid by buyers) + (amount received by sellers- cost to sellers)

consumer surplus

The ________ measures how much benefit buyers receive from participating in a market.

Free markets

________ allocate supplies of goods to buyers who 'll value them the most, which is measured by how much they 're willing to pay.

total surplus

The ________ is the sum of consumer and producer surplus.

Producer surplus

________ and consumer surplus are similar and often considered together, as one term.

Consumer surplus

________= value to buyers- the amount paid by buyers.

Producer surplus

________= amount received by sellers- cost to sellers.

Consumer surplus

________ measures the benefit that buyers receive from a good as the buyers themselves perceive it.