1.2.8 Consumer and producer surplus Flashcards

1
Q

What is consumer surplus?

A

Consumer surplus is the difference between the amount the consumer is willing to pay for a product and the price they have actually paid.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is producer surplus?

A

Producer surplus is the difference between the amount that the producer is willing to sell a product for and the price they actually do.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly