Chapter 7 (Consumers, Producers, and The Efficiency of The Markets)
Chapter 7 (Consumers, Producers, and The Efficiency of The Markets)
Chapter 7 (Consumers, Producers, and The Efficiency of The Markets)
Consumers, Producers,
and the Efficiency of
Markets
RMBPanti, ADMU
Definition
Welfare Economics
Willingness to Pay
The maximum amount that the buyer will pay for a good.
Example
Example
Definition
Consumer Surplus
Cost
Producer Surplus
Producer surplus is the area below the price and above the
supply curve.
Producer Surplus
Producer Surplus
Example
Total surplus
Efficient Allocation