Consumer And producer surplus Flashcards

1
Q

What is consumer surplus

A

Difference between the price consumers were willing and able to pay for a product or service and what they actually paid

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

Wha is producer surplus

A

Difference between the price firms are willing and able to supply the market at. And the price they actually supply the market at

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