Consumer and Producer surplus Flashcards

1
Q

What is consumer surplus?

A

The difference between the maximum that consumers would be willing to pay for a good and what they actually do pay.

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

What is producer surplus?

A

The difference between the minimum that a producer would be willing to sell a good/service for and the actual price at which it is sold.

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