consumr and producer surplus Flashcards
1
Q
consumer surplus definition
A
the difference between the price that a consumer us willing to pay and the price they actually pay
2
Q
producer surplus definition
A
difference between the price a producer is willing to supply and the price they actually receive
3
Q
consumer surplus on graph
A
area above equilibrium price line and below demand curve
4
Q
producer surplus on graph
A
area above supply curve and below equilibrium price line
