CONSUMER AND PRODUCER SURPLUS, AND TOTAL REVENUE Flashcards
1
Q
Consumer surplus
A
2
Q
Changes in consumer and producer surplus when price rises from P to P2Consumer surplus decreases from A+B+D to A and producer surplus changes from C+E to B+C
A
3
Q
Total revenue at the equilibrium price and quantity (TR = P x Q)
A
4
Q
Change in total revenue following a fall in price (TR=PxQ)
A
5
Q
Change in total revenue after a 5p increase in price
A
6
Q
Impact of a fall in price on total revenue (PXQ changes to P1xQ1)
A
7
Q
Total revenue = price x quantity, using AR rather than D
A
8
Q
Increase in supply changes total revenue from £10x5000 to £8x7000
A
9
Q
Change in total revenue when price changes. At price = £3, total revenue = £3x8; at price = £4, total revenue = £4x7
A
