Term
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Definition
| the difference between the highest price a consumer is willing to pay for a good or service and the actual price the consumer pays. |
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Definition
| the difference between the lowest price a firm would be willing to accept for a good or service and the price it actually receives. |
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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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Term
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Definition
| the additional cost to a firm of producing one more unit of a good or service. |
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Term
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Definition
| equal to the area above the supply curve and below the market price |
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Term
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Definition
| a market is equal to the total benefit received by consumers (measured in dollars) minus the total amount they must pay to buy the good or service. |
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Term
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Definition
| the total net benefit to consumers and firms |
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Term
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Definition
| A market outcome in which the marginal benefit to consumers of the last unit produced is equal to its marginal cost of production and in which the sum of consumer surplus and producer surplus is at a maximum. |
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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 legally determined maximum price that sellers can charge. |
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Term
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Definition
| A legally determined minimum price that sellers may receive. |
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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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