Consumer/producer surplus Flashcards
1
Q
What effect does PeD have on consumer surplus
A
Inelastic PeD causes a larger surplus because people are willing to spend more
2
Q
Give another term for producer surplus
A
Profit
What effect does PeD have on consumer surplus
Inelastic PeD causes a larger surplus because people are willing to spend more
Give another term for producer surplus
Profit