Unformatted text preview: u Producer surplus: Difference between the price actually received and the minimum price for which the producer would produce the unit (min pric e This would be the other half of the total area of the triangle. Consumer + Producer surplus = Total surplus Price Controls Price Ceiling: The govt sets the highest price that may legally be charged. Ex: Rent controls Price Floor: The govt sets the lowest price that may legally be paid. Ex: Agricultural price supports, minimum wage A price floor or ceiling could then make the equilibrium price illegal....
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This note was uploaded on 04/13/2008 for the course ECO 2023 taught by Professor Rush during the Summer '08 term at University of Florida.
- Summer '08