consumer and producer surplus Flashcards

1
Q

What is consumer surplus

A

Consumer surplus is the difference between the price a consumer is willing to pay for a product and the price that they actually pay

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 price a producer is willing to supply a product at and the price actually received for the product

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