Econ Chapter 7

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

total surplus

all of the above: -is the to value to buyers minus the cost to sellers -can be used to measure a markets efficieny -is the sum of consumer and producer surplus

total surplus is represented by the area

between the demand and supply curves up to the point of equilibrium

the equilibrium allocation of resources is

efficient bc total surplus is maximized at the equilibrium

a consumers willingness to pay directly measures

how much a buyer values a good

suppose the demand for peanuts increases. what will happen to producer surplus in the market for peanuts

it increases

cost is a measure of the

sellers willingness to sell

consumer surplus is

the amount a buyer is willing to pay for a goo minus the amount the buyer actually pays for it

a supply curve can be used to measure producer surplus because it reflects

the sellers costs

efficiency in a market is achieved when

the sum of producer surplus and consumer surplus is maximized

producer surplus directly measures

the well- being of sellers

at the equilibrium price of a good, the good will be purchased by those buyers who

value the good more than price

economists typically measure efficiency using

total surplus

in a market, the marginal buyer is the buyer

who would be the first to leave the market if the price were any higher

on a graph, the area below a demand curve and above the price measures

consumer surplus

total surplus in a market is equal to

consumer surplus + producer surplus

all else equal, what happens to consumer surplus if the price of a good increases

consumer surplus decreases

suppose there is an early freeze in cali that reduces the size of the lemon crop. what happens to consumer surplus in the market for lemons

consumer surplus decreases

a seller is willing to sell a product only if the seller receives a price that is at least as great as the

sellers cost of production

if the price a consumer pays for a product is equal to a consumers willignness to pay, the the consumer surplus relevant to that purchase is

zero


Set pelajaran terkait

Chapter 1:Overview of Strategic Marketing-Principles of Marketing-BCOR 2201

View Set

medical law and ethics study guide chapters 1-2

View Set

Principles of Marketing Ch.14 - SmartBook

View Set

Populations in Research Requiring Additional Considerations and/or Protections

View Set