Producer Surpluz Flashcards
1
Q
What is producer surplus ?
A
Welfare gained by the selller who recieve more for a good than the minimum that they would be preparing to accept
2
Q
Increase in price
A
A is original ps
A and b is new ps
B is gain in ps
3
Q
Decrease in price
A
A is new ps
A and b is original producer surplus
B is loss in ps
