Chapter 5

Question 1

Consumer Surplus

Answer 1

The excess of the benefit received from a good over the amount paid for it.

[marginal benefit (value) - price of good] / quantity bought

Question 2

A supply curve is the same as a….

Answer 2

Marginal Cost Curve

Question 3

Market Supply

Answer 3

A relationship between the price of a good and the quantity supplied by all the producers

Question 4

Producer Surplus

Answer 4

The excess amount received from the sale of a good or service over the cost of producing it

[marginal cost (or min supply-price) summed] / quantity sold