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7 Cards in this Set
- Front
- Back
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Willingness to Pay |
The maximum amount that a buyer will pay for a good |
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Consumer Surplus |
The amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it |
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Marginal Buyer |
Buyer who would leave the market first if the price got any higher |
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Cost |
The value of everything a seller must give up to produce a good |
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Producer Surplus |
The amount a seller is paid for a good minus the seller's cost of providing it |
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Efficiency |
The property of a resource allocation of maximizing the total surplus received by all members of society |
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Equality |
The property of distributing economic prosperity uniformly among the members of society |
