elasticity pt 2

Question 1

CONSUMER SURPLUS
different people will be at ______________ among the demand curve due to the ________________ of the consumer

Answer 1

different levels
willingness

Question 2

consumer surplus is the amount the consumer _________

Answer 2

saves
EX: willing to pay $5 but the actual price is $3. So consumer surplus would be $2

Question 3

PRODUCER SURPLUS
People are willing to supply products at different _______

Answer 3

prices

(below equilibrium; above supply curve)

Question 4

when you add the producer and consumer surplus you get _________

Any loss of social surplus is called _________

Answer 4

social surplus

dead weight loss

Question 5

SELLERS want the PED to be _______
and the PES to be ___________

Answer 5

inelastic
elastic

Question 6

agricultural good are _________ in supply
manufactured goods are _______ in supply

Answer 6

inelastic
elastic