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Questions and Answers
What is consumer surplus?
What is consumer surplus?
- The amount that producers benefit by selling at a market price that is higher than the least that they would be willing to sell for.
- The total welfare or total social welfare obtained by consumers.
- The difference between the price consumers are willing to pay and the price they actually pay for a product. (correct)
- The difference between the price producers are willing to sell for and the market price.
What is producer surplus?
What is producer surplus?
- The total welfare or total social welfare obtained by consumers.
- The amount that producers benefit by selling at a market price that is higher than the least that they would be willing to sell for.
- The difference between the price producers are willing to sell for and the market price. (correct)
- The difference between the price consumers are willing to pay and the price they actually pay for a product.
What is deadweight loss?
What is deadweight loss?
- The difference between the price consumers are willing to pay and the price they actually pay for a product.
- The total welfare or total social welfare obtained by consumers.
- A decrease in the total surplus from inefficiencies. (correct)
- The difference between the price producers are willing to sell for and the market price.
What is the sum of consumer and producer surplus known as?
What is the sum of consumer and producer surplus known as?
What are the two related quantities of economic surplus?
What are the two related quantities of economic surplus?
True or false: Economic surplus is also known as total welfare or total social welfare or Marshallian surplus?
True or false: Economic surplus is also known as total welfare or total social welfare or Marshallian surplus?
True or false: Consumer surplus is the monetary gain obtained by consumers because they are able to purchase a product for a price that is higher than the highest price they would be willing to pay?
True or false: Consumer surplus is the monetary gain obtained by consumers because they are able to purchase a product for a price that is higher than the highest price they would be willing to pay?
True or false: Producer surplus is the amount that producers benefit by selling at a market price that is higher than the least that they would be willing to sell for?
True or false: Producer surplus is the amount that producers benefit by selling at a market price that is higher than the least that they would be willing to sell for?
True or false: The sum of consumer and producer surplus is sometimes known as social surplus or total surplus?
True or false: The sum of consumer and producer surplus is sometimes known as social surplus or total surplus?
True or false: A decrease in total surplus from inefficiencies is called deadweight loss?
True or false: A decrease in total surplus from inefficiencies is called deadweight loss?
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