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Flashcards in EXAM 2 Deck (7)
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1

The amount the consumer is willing to pay minus the amount the consumer actually pays equals what?

The consumer surplus.

2

What is the price a producer receives for a product minus the marginal cost of production?

This is the producer surplus

3

What is the consumer surplus for Juan and Forrest?

$16 For Juan

$7 For Forrest

4

Tupaks consumer surplus is _______ Juans because Tupak has a _____ Willingness to pay

Less

 

Lower

5

How do you calculate marginal cost?

Take what the consumer is willing to minus what the producer is willing to charge.

6

If a supplier has a cost that is between the equalibrium price and price ceiling will be squeezed our of the market if the government institutes a price what?

Price ceiling

7

What does a price floor do for some consumers?

It pushes them out of the market