Consumer Surplus, Producer Surplus, and Market Efficiency
Studied by 0 people
View linked note
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt Play1/9
Earn XP
Description and Tags
These flashcards cover key concepts related to consumer surplus, producer surplus, and market efficiency, as discussed in the lecture.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai |
|---|
No analytics yet
Send a link to your students to track their progress
10 Terms
Consumer Surplus
The difference between what a buyer is willing to pay for a good and what the buyer actually pays.
Producer Surplus
The difference between what a seller is paid for a good and the cost of providing it.
Market Efficiency
A situation in which all resources are allocated in a way that maximizes total surplus, benefiting society as a whole.
Total Surplus
The sum of consumer surplus and producer surplus in a market.
Welfare Economics
The study of how the allocation of resources affects economic well-being.
Demand Curve
A graph showing the relationship between the price of a good and the quantity demanded.
Equilibrium Price
The price at which the quantity of a good demanded equals the quantity supplied.
Price Ceiling
A legal maximum price that can be charged for a good.
Price Floor
A legal minimum price that must be paid for a good.
Externalities
Costs or benefits that affect parties who did not choose to incur those costs or benefits.
Flashcards (49)