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Topic: Consumer and producer surplus


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In the News (Fri 24 Nov 17)

  
  Kids.Net.Au - Encyclopedia > Consumer and producer surplus
The consumer surplus is the amount that consumers benefit by being able to purchase a product for a price that is less than they would be willing to pay.
The producer surplus is the amount that producers benefit by selling at a market price that is higher than they would be willing to sell for.
A basic technique of bargaining for both parties is to pretend that one's surplus is less than it really is: the seller may argue that the price he or she asks hardly leaves him or her any profit, while the customer may play down how eager he or she is to have the article.
www.kids.net.au /encyclopedia-wiki/co/Consumer_and_producer_surplus   (231 words)

  
  Encyclopedia: Consumer and producer surplus   (Site not responding. Last check: 2007-10-24)
The term surplus is used in economics for several related quantities.
The consumer surplus is the amount that consumers benefit by being able to purchase a product for a price that is less than they would be willing to pay.
A basic technique of bargaining for both parties is to pretend that their surplus is less than it really is: sellers may argue that the price they asks hardly leaves them any profit, while customers may play down how eager they are to have the article.
www.nationmaster.com /encyclopedia/Consumer-and-producer-surplus   (282 words)

  
 Microeconomics - Consumer & Producer Surplus
In this note we recap the concepts of consumer and producer surplus that were covered as part of the AS economics course and we then use them to help analyse some of the welfare effects of the market structures visited in previous notes.
Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total amount that they actually pay (the market price).
Producer surplus is the difference between what producers are willing and able to supply a good for and the price they actually receive.
www.tutor2u.net /economics/revision-notes/a2-micro-consumer-producer-surplus.html   (660 words)

  
 Selected Answers in Chapter 9
So the benefit to consumers of producing one more unit of output (the marginal benefit) is larger than the cost of producing that output (the marginal cost), meaning that it would be economically efficient to produce that an unit of output.
Consumer surplus is the area of a triangle with height $20 (since the price is $10 and the demand curve intercepts the Y axis at a price of $30) and base 20, so consumer surplus is $200.
Consumer surplus is the area of a triangle with height $20 (since the price is $10 and the demand curve intercepts the Y axis at a price of $30) and base 200, so consumer surplus is $2000.
www.econ.rochester.edu /eco108/ch9/ans9.htm   (2314 words)

  
 [No title]
The competitive equilibrium is efficient in that it produces the largest surplus equal to the sum of producer and consumer surplus.
Total consumer and producer surplus is decreased by $6 of tax revenue and the excess burden is $1.
Producers will resist their losses, and since the loss is spread over fewer producers than the gain for consumers, they have a stronger incentive to organize for trade protection.
www.k-state.edu /economics/ramesh/E520CHP9.HTM   (2699 words)

  
 Microeconomics - Consumer Surplus
Consumer surplus is a measure of the welfare that people gain from the consumption of goods and services, or a measure of the benefits they derive from the exchange of goods.
Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total amount that they actually do pay (i.e.
Consumer surplus can be used frequently when analysing the impact of government intervention in any market – for example the effects of indirect taxation on cigarettes consumers or the introducing of road pricing schemes such as the London congestion charge.
www.tutor2u.net /economics/revision-notes/as-markets-consumer-surplus.html   (991 words)

  
 Spartanburg SC | GoUpstate.com | Spartanburg Herald-Journal
Note that producer surplus flows through to the owners of the factors of production, unlike economic profit which is zero under perfect competition.
Total surplus is the primary measure used in Welfare Economics to evaluate the efficiency of a proposed policy.
A basic technique of bargaining for both parties is to pretend that their surplus is less than it really is: sellers may argue that the price they asks hardly leaves them any profit, while customers may play down how eager they are to have the article.
www.goupstate.com /apps/pbcs.dll/section?category=NEWS&template=wiki&text=producer_surplus   (418 words)

  
 Economic surplus
The consumer surplus shows up above the price and below the demand curve, since the consumer is paying less for the item than the maximum that they would pay.
The producer surplus shows up below the price and above the supply curve, since that is the minimum that a producer can produce that quantity with.
A basic technique of bargaining for both parties is to pretend that one's surplus is less than it really is: the seller may argue that the price he or she asks hardly leaves him or her any profit, while the customer may play down how eager he or she is to have the article.
www.brainyencyclopedia.com /encyclopedia/e/ec/economic_surplus.html   (350 words)

  
 Demand, Supply, and Surpluses
Consumer B pays $5 for a cake that provides him $8 worth of happiness, so his consumer surplus is only $3.
Consumer E pays $5 for something that provides her with exactly $5 of happiness, so her consumer surplus is zero.
Producer O receives $5 for something that cost it $5 to make, so its producer surplus is zero.
faculty.washington.edu /danby/bls324/surplus.html   (1870 words)

  
 Economic Efficiency and the Gains from Trade
Consumer surplus is the benefit to a consumer of being able to buy a good at the equilibrium price.
Producer surplus is the benefit to a producer/seller of being able to sell a good at the equilibrium price.
Consumer surplus is A, producer surplus is F, government tax revenue is B + D, and the deadweight social loss is C + E. Without a subsidy, consumer surplus is area A + B
www.econ.rochester.edu /eco108/ch9/summ9.html   (709 words)

  
 Surplus Values
Consumer's surplus for each unit bought by consumers is the difference between the reservation price the consumer had for that unit and the price the consumer actually had to pay.
If every consumer were charged his or her reservation price for each unit of a good, it would be as if they were trading two five dollar bills for a ten dollar bill.
In this case, the producer's surplus for that Jeep is $500.
www.ses.wsu.edu /people/faculty/rosenman/web198/surplus.htm   (1120 words)

  
 bp_ayers_micro_1|The Power of Prices|Practice Quiz
A drop in consumer surplus equal to area B. An increase in consumer surplus equal to area A for existing consumers, and area C for new consumers.
Consumer surplus in the diamond market is small because diamonds are scarce.
Consumers are made better off and producers are made worse off by the decision to trade.
wps.prenhall.com /bp_ayers_micro_1/0,,487035-,00.utf8.html   (963 words)

  
 [No title]
The concepts of consumer surplus and producer surplus are widely used for evaluating policy changes: Cost-Benefit Analysis recognizes that benefits accrue as surplus and so are not always measured in market transactions.
Producer surplus consists of gross profits accruing to firms and economic rents accruing to input owners (in special cases, it consists only of one or the other).
If the number of firms is fixed (as in the short run), the market supply is the horizontal sum of individual supplies and producer surplus is the sum of the individual firms’ producer surpluses.
www.virginia.edu /economics/papers/anderson/producer.doc   (546 words)

  
 Eco 301 chapter 9
Producer surplus are benefits to those producers who can produce at a lower marginal cost and selling at the market price.
Since the gains to consumers are offset by the losses to producers economist call this difference a dead weight loss, which is the net loss of total (consumer plus producer) surplus.
The change in consumer surplus was A-B and the change in producer surplus was —A-C, the total change in surplus is consumer surplus plus producer surplus or (A-B) + (-A-C)= -B-C. The two triangles B and C are the deadweight loss in the economy due to the price controls put on by the government.
www.oswego.edu /~spizman/eco301ch9.html   (1598 words)

  
 economic surplus
Economic Surplus is the overall benefit a society composed of consumers and producers receives when a good or service is bought or sold, given a quantity provided and a price attached.
Consumer surplus refers to the benefit consumers receive from purchasing a good/service that they would have been willing to pay more for.
Producer surplus refers to the benefit a producer receives from providing a good/service at a market price that they would have been willing to sell at a lower price.
www.fxwords.com /e/economic-surplus.html   (109 words)

  
 D. Friedman, Price Theory: Chapter 5: Production
Producer surplus, the marginal disvalue for labor, and the supply curve for lawn mowing.
The sum of the producer surplus that B receives at a price of $6 plus the producer surplus that A receives is equal to the producer surplus calculated from the combined supply curve--the area above their combined supply curve and below the horizontal line at $6.
Producers sell their output on the market, so all they have to know in order to decide what to produce is how much it sells for.
www.daviddfriedman.com /Academic/Price_Theory/PThy_Chapter_5/PThy_Chapter_5.html   (7204 words)

  
 [No title]
Consumer surplus equals buyers’ willingness to pay for a good minus the amount they actually pay for it, and it measures the benefit buyers get from participating in a market.
Producer surplus equals the amount sellers receive for their goods minus their costs of production, and it measures the benefit sellers get from participating in a market.
An allocation of resources that maximizes the sum of consumer and producer surplus is said to be efficient.
www.iavalley.cc.ia.us /Microeconomics/Ch7Notes.htm   (293 words)

  
 Consumer and producer surplus
The consumer surplus is the amount that consumers benefit by being able to purchase a product for aprice that is less than they would be willing to pay.
The producer surplus is the amount that producers benefitby selling at a market price that is higher than they would be willing to sell for.
A basic technique of bargaining for both parties is to pretend that one'ssurplus is less than it really is: the seller may argue that the price he or she asks hardly leaves him or her any profit, whilethe customer may play down how eager he or she is to have the article.
www.therfcc.org /consumer-and-producer-surplus-3253.html   (292 words)

  
 Graph 1
Graph 4 shows the areas of producer surplus and consumer surplus with a downward sloping demand curve.
When a market does not produce at its efficient point there is a deadweight loss to society.
The blue rectangle is the amount transferred to the monopolist from the consumers.
www.csun.edu /~hceco008/c11d.htm   (449 words)

  
 ECON 201 - 4 Overheads for October 11, 2001
Consumer surplus is shown graphically as the area between the demand curve and the market price.
Producer surplus is the sum of the difference between the market price and the opportunity cost of production for all units produced and sold.
Producer surplus is shown graphically as the area between the market price and the supply curve.
www.oregonstate.edu /~fraundom/class6.html   (1067 words)

  
 Economic impact of the use of radio spectrum in the UK | Ofcom
Producer and consumer surplus are defined in more detail in Chapter 3 of the study.
Producer surplus for the cellular mobile sector also increased significantly, partly as a result of increased average revenue per user and partly as a result of an increased level of data usage associated with enhanced 2G and 3G mobile services.
We attribute this increase partly to possible under-recording of consumer willingness to pay figures in previous studies and also to the recent growth and availability of digital television and digital radio services, although very high WTP results were also recorded for the traditional five terrestrial television channels.
www.ofcom.org.uk /research/radiocomms/reports/economic_spectrum_use/?view=Welsh   (975 words)

  
 Economic surplus - Encyclopedia.WorldSearch   (Site not responding. Last check: 2007-10-24)
The term surplus is used in economics for several
The consumer surplus is the amount that consumers benefit by being
that is the minimum that a producer can produce that quantity with.
encyclopedia.worldsearch.com /consumer_and_producer_surplus.htm   (371 words)

  
 Consumer Surplus
The theory underlying this is called consumer surplus but also requires some understanding of markets and the concept of value.
Use a diagram to explain what is likely to have happened to the level of consumer and producer surplus as the bidding for the painting progressed.
Measuring welfare is not easy however, but one way of doing this is to look at the extent of consumer and producer surplus and how these change when resources are re-allocated (in other words, using demand and supply diagrams to represent markets).
www.bized.co.uk /current/mind/2005_6/220506.htm   (2831 words)

  
 Consumer Surplus Homework
Compute the new consumer and producer surpluses and indicate how the tax is being shared between workers and firms.
Compute the consumer and producer surplus associated with this new demand curve and the original supply.
Compute the consumer and producer surplus, the government revenue, and the deadweight loss.
facweb.furman.edu /~kpeterso/peterson/e50ps.htm   (319 words)

  
 Consumer Surplus
Every unit of the good that is purchased is purchased only if the marginal benefit to the consumer of that unit - shown by the height of the demand curve at that point - exceeds the market price.
In other words, for the 51'st unit the consumer surplus would be negative.
To Return to the consumer and producer surplus page in Prometheus please re-activate that window, perhaps closing this one.
home.ubalt.edu /ntsbgerl/econ305/welfare/consum12.htm   (158 words)

  
 Egwald Economics - Oligopoly / Government Firm: Derivation of the Model
DW1 estimates the change in consumer surplus that is not offset by a change in g.f producer surplus.
producer surplus not offset by a change in consumer surplus.
That is - find that value of the GAP where either an increase or decrease in the value of the GAP decreases the value of Consumer + Producer Surplus obtained directly from the government firm.
www.egwald.com /economics/econmath.php   (990 words)

  
 The Urban Institute | Toolkit | Data Methods | Cost-Benefit Analysis
A typical CBA might study a change in environmental regulation, for example, when costs of producing a good (such as paper) does not include costs to others who are not part of the market transaction (such as costs from pollution).
Transfers from consumers and producers to third parties produce no overall change in welfare.
Net social welfare change (the primary outcome of CBA) is measured as the costs of the intervention compared to the overall change in welfare for society: consumers, producers, and third parties.
www.urban.org /toolkit/data-methods/cost-benefit.cfm   (636 words)

  
 [No title]
Consumer surplus is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
Producer surplus would fall by area A + B. Area A represents producer surplus to new producers entering the market as the result of an increase in price from P1 to P2.
Consumer surplus will be equal to producer surplus. Inefficiency exists in an economy when a good is not being consumed by buyers who value it most highly.
www.unc.edu /~tatevik/ProblemSet3.doc   (1860 words)

  
 Alfred Marshall, Biography: The Concise Encyclopedia of Economics: Library of Economics and Liberty
He noted that the price is typically the same for each unit of a commodity that a consumer buys, but the value to the consumer of each additional unit declines.
This difference is called the consumer surplus, for the surplus value or utility enjoyed by consumers.
Marshall also introduced the concept of producer surplus, the amount the producer is actually paid minus the amount that he would willingly accept.
www.econlib.org /library/Enc/bios/Marshall.html   (713 words)

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