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Flashcards in Produce and Consumer Surplus Deck (11)
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1
Q

consumer surplus

A

is the excess money that consumers do not spend when the price point is too high (above the equilibrium point) for them to buy

2
Q

producer surplus

A

is the excess supply that exists when consumers can purchase the product for an amount below the equilibrium point (D)

3
Q

when there is a consumer surplus, where is it located in relation to the equilibrium price

A

above and to the left

4
Q

produce surplus

A
  • producer is below market equilibrium price

- below equilibrium and above supply curve

5
Q

market equilibrium maximizes both consumer and producer surplus. this means which of the following for the total benefit for everyone

A

it is maximized

6
Q

when there is a producer surplus, where is it located in relation to the equilibrium price

A

below and to the left

7
Q

consumers in consumer surplus are willing to do what

A

pay more for some of the good

8
Q

what is the benefit for the consumer

A

prices go down

9
Q

what is the benefit for the producer

A

prices go up

10
Q

consumer surplus

A

the total economic benefit to the consumer

11
Q

market equilibrium

A

G