LS13 - Consumer & Producer Surplus Flashcards
1
Q
Consumer Surplus
A
The extra amount of money consumers are prepared to pay above what they pay for a good or service - the extra above the minimum required from them to supply.
2
Q
Consumer Surplus Graphway
A
Triangle Above Price Line
3
Q
Producer Surplus
A
The extra amount of money paid to producers above what they are willing to accept.
4
Q
Producer Surplus Graphway
A
Triangle Below Price Line
