Econ Exam 1 Flashcards
1
Q
_______is a graphical representation of the relationship between price and quantity demanded.
A
The demand curve
2
Q
the maximum price a buyer is willing to pay and the market price is ______
A
Consumer surplus
3
Q
Consumer surplus is shown graphically as the area
A
under the demand curve and above the market price
4
Q
Consumers are willing to pay more at an ____________ in demand
A
increase
5
Q
When the demand shifts left there is a ________ in demand
A
decrease
6
Q
The sum of producer surplus and consumer surplus
A
social warfare
7
Q
___________ is the price where quantity demanded= quantity supplied
A
Equilibrium
8
Q
Surplus does not equal ______
A
consumer surplus
