Economic Efficiency

Consumer Surplus

The difference between the price consumers pay and their willingness to pay, reflecting the utility gained.

Producer Surplus

The difference between the minimum price a producer would accept and the market price received.

Price Ceiling

A regulation setting the maximum price for a good or service.

Price Floor

A regulation setting the minimum price for a good or service, often called a price support.

Surplus Transfer

The surplus that moves from producers to consumers, or vice versa, due to a regulation.

Deadweight Loss

The reduction in total surplus due to market inefficiency, such as unemployment.