Produce and Consumer Surplus

Question 1

consumer surplus

Answer 1

is the excess money that consumers do not spend when the price point is too high (above the equilibrium point) for them to buy

Question 2

producer surplus

Answer 2

is the excess supply that exists when consumers can purchase the product for an amount below the equilibrium point (D)

Question 3

when there is a consumer surplus, where is it located in relation to the equilibrium price

Answer 3

above and to the left

Question 4

produce surplus

Answer 4

• producer is below market equilibrium price

- below equilibrium and above supply curve

Question 5

market equilibrium maximizes both consumer and producer surplus. this means which of the following for the total benefit for everyone

Answer 5

it is maximized

Question 6

when there is a producer surplus, where is it located in relation to the equilibrium price

Answer 6

below and to the left

Question 7

consumers in consumer surplus are willing to do what

Answer 7

pay more for some of the good

Question 8

what is the benefit for the consumer

Answer 8

prices go down

Question 9

what is the benefit for the producer

Answer 9

prices go up

Question 10

consumer surplus

Answer 10

the total economic benefit to the consumer

Question 11

market equilibrium

Answer 11

G