Term
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Definition
| The difference between the highest price a consumer is willing to pay and the price the consumer actually pays. |
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Term
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Definition
| The additional benefit to a consumer from consuming one more unit of a good or service. |
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Definition
| The additional cost to a firm or producing one more unit of a good or service. |
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Term
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Definition
| The difference between the lowest price a firm would be willing to accept and the price it actually receives. |
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Term
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Definition
| The sum of consumer surplus and producer surplus. |
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Term
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Definition
| The reduction in economic surplus resulting from a market not being in competitive equilibrium. |
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Term
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Definition
| A market outcome in which the MB to consumers of the last unit produced is equal to the MC of production and in which the sum of CS and PS is at a maximum. |
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Term
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Definition
| An example of government intervention in which a minimum price is place on a given good or service in an effort to encourage production. |
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Term
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Definition
| An example of government intervention where a maximum price is set the discourage exploitation of consumers. |
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Term
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Definition
| A market in which buying and selling take place at prices that violate government price regulations. |
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Term
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Definition
| The actual division of the burden of a tax between buyers and sellers in a market. |
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