Consumer and Producer surplus Flashcards
1
Q
What is consumer surplus ?
A
The difference between the price that consumers are willing to pay and the price they actually pay
2
Q
What is producer surplus ?
A
Difference between the price producers are willing to supply a good for and the price they actually receive
3
Q
Where is consumer surplus found on the diagram ?
A
Found below the demand curve and above the price line on a diagram
4
Q
Where is producer surplus found on the diagram ?
A
PS found above the supply curve and below the price
5
Q
A
