Which best describes consumer surplus
The price consumers are willing to pay for a unit
The cost of providing a unit
Profits made by a firm
The difference between the price a consumer pays for an item and the price he/she is willing to pay for it
Community surplus equals:
Producer surplus minus consumer surplus
Profits plus utility
Total utility minus profits
Consumer surplus plus producer surplus
What best describes producer surplus
The difference between the amount the producer is willing to supply goods for and the actual amount received by him when he makes the trade.
Profit made by producers
Loss of cost of production by producers
All of the above
Identify the producer surplus
D
C
A
B
Identify consumer surplus
Identify total societal welfare
A+C
B+D
A+B
D+C
What is the producer surplus at equilibrium price
15
10
25
None of the above
What is the consumer surplus at the equilibrium price
Calculate the total societal welfare at equilibrium price
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