Micro 1.2.8 Flashcards
1
Q
What is consumer surplus
A
The difference between the total amount consumers are willing and able to pay (demand curve) and amount they actually pay (equilibrium price)
(Above price, under curve)
2
Q
What is producer surplus?
A
The difference between the price producers are willing and able to supply a good for and the price they actually receive
(Under price, above curve)