Consumer%20Producer%20Surplus%20HO

# Consumer%20Producer%20Surplus%20HO - Consumer Surplus:...

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P Q \$5.00 \$10.00 \$15.00 1,000 2,000 3,000 Consumer Surplus: Difference between maximum amount we are willing to pay and the price we pay. Suppose consumers may purchase as much or as little of this good as they want to at a market price: P Market = \$6.00 Consumer Surplus in this market equals ________ dollars. Demand (MB)

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P Q \$5.00 \$10.00 \$15.00 1,000 2,000 3,000 Producer Surplus: Difference between the minimum amount a producer will accept for his/her good and the price he/she receives. Supply (MC) Suppose producers may sell as much or as little as they want to at a market price of: P Market = \$10.00 Producer Surplus in this market equals __________ dollars.
P Q \$5.00 \$10.00 \$15.00 5,000 10,000 15,000 Supply Demand Perfect Competition (Price taking firms and consumers) maximizes the sum of Producer and Consumer Surplus: In this market, consumer surplus: CS = ____________ Producer Surplus is: PS = ____________

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Monthly Rent Apartments \$500 \$1000 \$1500 1,000 2,000 3,000 Supply Demand Rent Control:
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## This note was uploaded on 02/06/2011 for the course ECON 415 taught by Professor Holland during the Summer '09 term at Purdue.

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Consumer%20Producer%20Surplus%20HO - Consumer Surplus:...

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