The amount the consumer is willing to pay minus the amount the consumer actually pays equals what?
The consumer surplus.
What is the price a producer receives for a product minus the marginal cost of production?
This is the producer surplus
What is the consumer surplus for Juan and Forrest?
$16 For Juan
$7 For Forrest
Tupaks consumer surplus is _______ Juans because Tupak has a _____ Willingness to pay
How do you calculate marginal cost?
Take what the consumer is willing to minus what the producer is willing to charge.
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?
What does a price floor do for some consumers?
It pushes them out of the market