Ch11 Consumer and Producer Surplus

Front

What is consumer surplus?

Back

Consumer surplus is the difference between the price a consumer is willing to pay for a product and its market price.

Front

What is producer surplus?

Back

Producer surplus is the difference between the price a producer is willing to accept and what is actually paid.

Front

What happens to producer surplus when the supply of tickets increases?

Back

Producer surplus increases.

Front

What happens to consumer surplus when the demand curve for tickets becomes more price inelastic?

Back

Consumer surplus decreases.

Front

What happens to producer surplus when the supply curve for tickets becomes more elastic?

Back

Producer surplus decreases.