Term
|
Definition
the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
area above price and below demand curve. |
|
|
Term
| Change in Consumer Surplus |
|
Definition
|
|
Term
|
Definition
The amount a seller is paid for a good minus the seller's cost of providing it.
The area below price and above the Supply curve |
|
|
Term
| Marginal cost goes with the _______ curve. |
|
Definition
|
|
Term
| Marginal Value goes with the ______ curve. |
|
Definition
|
|
Term
| What is the formula to maximize Total Surplus |
|
Definition
Demand Curve - Supply Curve.
or
individual Valuations - Firms Costs. |
|
|
Term
|
Definition
| People who value it most, or have highest willingness to pay |
|
|
Term
|
Definition
| Firms with lowest cost to produce |
|
|
Term
| Efficiency is achieved when society_______________. |
|
Definition
| is organized to maximize total surplus |
|
|
Term
| Increase output when___________. |
|
Definition
| marginal value is greater than marginal cost. |
|
|
Term
| Reduce output when ________________. |
|
Definition
| marginal cost is greater than marginal value. |
|
|
Term
| What three things occur when a tax is added? |
|
Definition
1) price to consumers increases
2) Price to producers decreases
3) equilibrium quantity falls |
|
|
Term
|
Definition
|
|
Term
| Inefficiencies associated with taxes? |
|
Definition
| Lost producer/consumer surplus |
|
|
Term
| Dead Weight Loss arises out of_____________. |
|
Definition
| change in equilibrium quantity. |
|
|
Term
| As tax increases, DWL increases by___________ |
|
Definition
|
|
Term
|
Definition
| below Q and Below S curve. |
|
|
Term
| Dead Weight Loss is greater when the demand/supply curve is_______. |
|
Definition
|
|
Term
|
Definition
| the manner in which the burden of a tax is shared among participants in a market. |
|
|
Term
| a tax burdon falls more heavily on the side of the market that is______ elastic. |
|
Definition
|
|
Term
|
Definition
| the maximum amount that a buyer will pay for a good |
|
|
Term
| The perfectly competitive market price is efficient because it___________. |
|
Definition
|
|
Term
| Firms eat the whole tax when_______. |
|
Definition
| the supply curve is PERFECTLY INELASTIC. |
|
|
Term
| Whatever curve is more ___________ bears the bigger burdon of the tax |
|
Definition
|
|
Term
| Tax revenue is the same as _______. |
|
Definition
| the change in consumer surplus |
|
|
Term
| Perfectly competitive markets produce the same level of output as a _______. |
|
Definition
| total surplus maximizing social planner. |
|
|
Term
| Nick produces cookies. He sells them for 2 dollars a dozen. He realizes his producer surplus is 10. what is his total cost? |
|
Definition
|
|
Term
nicole- 5
bruce-8
evan-5
mary-10.
If the market price for mowing lawns is 5 dollars, what is the TOTAL CONSUMER SURPLUS? |
|
Definition
|
|
Term
| What is the Dead Weight Loss of a tax? |
|
Definition
| The reduction in total surplus that results from the tax |
|
|
