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Chapter 6 Study Guide

Chapter 6 Study Guide - Chapter 6 Study Guide Key Terms...

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Chapter 6 Study Guide Key Terms Willingness to Pay: The maximum price that a customer will purchase a good at. Individual Consumer Surplus: The net gain to an individual buyer from the purchase of a good. It is equal to the difference between the buyer’s willingness to pay and the price paid. (Buyer’s Willingness – Price Paid). Total Consumer Surplus: The sum of the individual consumer surpluses of all the buyers of a good. Consumer Surplus: Often used to refer to both individual and to total consumer surplus. Cost: The lowest price at which he or she is willing to sell a good. Individual Producer Surplus: The net gain to a seller from selling a good. It is equal to
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