Microeconomics: Consumer and Producer Surplus

What is the measure of the benefit received by a buyer from participating in a market?

What is the difference between the maximum amount a buyer is willing to pay for a good and the amount they actually pay?

What is the benefit received by a producer from participating in a market?

What is the sum of consumer and producer surpluses?

What is the study of how the allocation of resources affects the economic well-being of a society?

What determines the point at which the benefits of buyers and sellers are maximized?

What is the difference between what a consumer is willing to pay and what they actually pay for a good or service?

What is the term for the value of everything a seller must give up to produce a good or service?

Who ultimately pays a tax, either directly or indirectly?

What is a benefit given from the government to groups or individuals in the form of a cash payment or a tax reduction?

What is the effect of a tax on consumers and producers?

What is the total benefit received by consumers and producers from participating in the market?

What is the term for the first triangle in the diagram, which represents the area between the demand and supply curves?

What is the graphical representation of the gain to consumers from consuming a good or service?

What happens to the total surplus when a subsidy is introduced in a market?

What is the sum of consumer surplus and producer surplus?

How does a tax affect the equilibrium price and quantity in a market?

What is the effect of a subsidy on the supply of a good or service?