Ag. Econ Chapter 8

The amount by which the quantity demanded at a given price exceeds the quantity supplied.

• Commodity shortage
• Commodity surplus
• Producer surplus
• Consumer surplus

Percentage change in quantity supplied with respect to a percentage change in the price of the producer.

• Firm supply curve
• Market supply curve
• Elasticity of supply
• Total Economic Surplus

A business is said to be a ___________ when its actions have absolutely no effect on the price of the input it is buying or the price of the product it is selling.

• Producer Surplus
• Price taker
• Monoply
• Firm supply curve

The amount by which the quantity supplied at a given price exceeds the quantity demanded

• Producer Surplus
• Consumer Surplus
• Commodity Shortage
• Commodity Surplus

Represented by the segment of the firm’s marginal cost curve that lies above the average variable cost curve or shutdown level of output.

• Firm Supply Curve
• Elasticity of Supply
• Total Economic Surplus
• Market Supply Curve

A measure of the economic rent or returns above total costs accruing businesses participating in a market during the current period.

• Consumer Surplus
• Commodity Shortage
• Firm Supply Curve
• Producer Surplus

A measure of the savings achieved by consumers at the current market price from the price they would have been willing to pay for a specific quantity of a good or service. Consumer surplus is equal to the area below the market demand curve and above the market equilibrium price.

• Commodity Shortage
• Producer surplus
• Consumer Surplus
• Market Supply Curve

Represents the summation of the quantities desired by all consumers at specific prices.

• Price Taker
• Market Supply Curve
• Firm Supply Curve
• Commodity Shortage

The sum of producer surplus and consumer surplus.

• Total Economic Surplus
• Producer Surplus
• Consumer Surplus
• Price Taker