11-Consumer & Producer Surplus Flashcards
(4 cards)
1
Q
Define Consumer Surplus
A
It is the Difference Between the Price Consumers are willing to pay and the Actual Market Price
2
Q
Define Producer Surplus
A
It is the Difference Between the Price that Producers are willing to Supply a Good for and the Actual Market Price
3
Q
State the Impact of Change in Demand
A
Increase in Demand = Increase in Consumer & Producer Surplus
Decrease in Demand = Decrease in Consumer & Producer Surplus
4
Q
State the Impact of Change in Supply
A
Increase in Supply= Increase in Consumer & Producer Surplus
Decrease in Supply= Decrease in Consumer & Producer Surplus
