extra 15 marker Flashcards
1
Q
what is producer surplus
A
the difference between how much a person would be willing to accept for a given quantity of a good vs how much they can receive by selling the good at market price
2
Q
what is consumer surplus
A
consumer surplus is the difference between what a consumer is willing to pay vs what they paid for a product
3
Q
what is tax incidence
A
who has the greater burden of paying the tax.
PED inelastic = consumer pays more
PES elastic = consumer pays more
