a) Consumer and producer surplus

0.0(0)
Studied by 0 people
linked notesNote
call kaiCall Kai
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/5

encourage image

There's no tags or description

Looks like no tags are added yet.

6 Terms

1
New cards

  • social surplus


  • the total monetary benefit gained by consumers and producers from market prices


2
New cards

  • the formula for social surplus


  • social surplus = consumer surplus + producer surplus


3
New cards

  • consumer surplus


  • the difference between the price the consumer is willing to spend to on a good/service and the market price


4
New cards

  • producer surplus


  • the difference between the market price and the price the producer is willing to receive for a good/service


5
New cards

  • consumer and producer surplus are maximised…


  • at market equilibrium


6
New cards

  • consumer and producer surplus on a graph


knowt flashcard image