Consumer And Procduced Surplus Flashcards
1
Q
What is consumer surplus?
A
The difference between the price consumers are willing and able to pay for goods/services and the price they actually pay
2
Q
What is producer surplus?
A
The difference between the price producers are willing and able to supply a good/service for and the price they actually receive for it
3
Q
Where is consumer surplus on a graph?
A
Below the demand curve
Above the price line
4
Q
Where is producer surplus on a graph?
A
Above the supply line
Below the price line
