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Unformatted text preview: Price floor – A minimum price below which exchange is not permitted. Minimum wage – A price floor set under the price of labor. Consumer surplus – The difference between the maximum amount a person is willing to pay for a good and its current market price. Producer surplus – The difference between the current market price and the full cost of production for the firm. Deadweight loss – The net loss of producer and consumer surplus from underproduction or overproduction....
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This note was uploaded on 03/03/2008 for the course ECON 1120 taught by Professor Wissink during the Spring '05 term at Cornell University (Engineering School).
- Spring '05