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4 Cards in this Set

  • Front
  • Back
Consumer Surplus
The difference between what a consumer actually pays and what they are willing to pay
total welfare gaines
PS + CS
Private good
Rival in consumption - a good is rival if my use of the good at a particular place and time prevents anyone else from using it at the same place and time. This particular bottle of water.
Excludable - Everyone except the person who bought the good is excluded from from consuming or using it.
Free Rider Problem
- the idea that because it is difficult (or impossible) to exclude people from using certain goods, there is an incentive to not pay for their use.