Consumer/Producer Surplus Flashcards
1
Q
Definition of Producer Surplus
A
The difference between the price producers are willing to supply a good for and the actual market price.
2
Q
Definition of Consumer Surplus
A
The difference in the price consumer are prepared to pay for a good and the actual market price paid.
3
Q
Definition of Consumer Surplus
A
The difference in the price consumer are prepared to pay for a good and the actual market price paid.
