Products yielding positive____________

 will tend to be under produced in a competitive economy.

Increases in price reduce or increase  consumer surplus.

Producer surplus 

difference between the actual price a producer receives (or Producers receive) and the minimum acceptable price that a consumer would have to pay the producer to make a particular unit of output available.

How to calculate Consumersurplus or deficiit?

Maximum willing paying price (   -   ) Actual Market Price (   =  )  Consumer surplus or deficit  

If Ted is willing to pay a max of $1.25 for an apple and the market has them for .50c, Ted has accomplished a ___________ consumer surplus.

.75c consumer surplus.

When MB > MC, there is an over or under allocation of resources

What do the characteristics of rivalry of private goods mean? (pg99)

The combined consumer and producer surplus is maximum when the market achieves ____________.

The combined consumer and producer surplus is maximum when the ____________ achieves allocation efficiency. 

____________ occur at quantities other than the competitive equilibrium quantity.

Deadweight losses occur at quantities other than the __________________.