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Consumer surplus
What is it? The difference between what you paid, and what you were willing and able to pay. What does it look like? It is the area below the demand curve, and above the equilibrium price.
Consumer surplus
Consumer
surplus Equilibrium Price
Producer Surplus
What is it? The amount a seller is paid, minus the sellers cost. What does it look like? It is the area above the supply curve, and below the equilibrium price.
Producer surplus
Equilibrium Price
Producer surplus
Consumer
surplus Equilibrium Price
Producer surplus
What effect will rent control have on Consumer and Producer Surplus?
Who are the consumers? Who are the producers?
Societys
Consumer
surplus Equilibrium Price
loss
Producer surplus
Rent Control
Any interference with the equilibrium price in perfectly competitive markets will reduce total consumer and producer surplus
What effect will a minimum wage have on Consumer and Producer Surplus?
Who are the consumers? Who are the producers?
Consumer
Societys loss
Minimum wage
surplus
Equilibrium Price
Producer surplus