Consumer & producer surplus Flashcards
(6 cards)
1
Q
how can consumer surplus be different ?
A
the higher the price the less consumer surplus lower the price more consumer surplus
2
Q
what is the definition of consumer surplus?
A
the difference between what consumers are willing and able to pay and what they actually pay
3
Q
where is consumer surplus typically found on a diagram?
A
below the demand curves but above the price line
4
Q
how can producer surplus be different?
A
the higher the price the more producer surplus lower less producer surplus
5
Q
what is the definition of producer surplus?
A
difference between the price producers are willing and able to provide a good/service at and what they actually receive
6
Q
where is producer surplus typically found on a diagram?
A
above the supply curve and below the price line
