MICRO - Topic 2.6 Market Equilibrium & Consumer & Producer Surplus

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4 Terms

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Consumer Surplus

the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it (CS = Buyer's Maximum - Price)

<p>the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it (CS = Buyer's Maximum - Price)</p>
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Producer Surplus

is the difference between the price the seller received and how much they were willing to sell it for (PS = Price - Seller's Minimum)

<p>is the difference between the price the seller received and how much they were willing to sell it for (PS = Price - Seller's Minimum)</p>
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Deadweight loss

when total surplus decreases

<p>when total surplus decreases</p>
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