CHAPTER8
Consumer and Producer Surplus
In This Chapter
- Consumer surplus: the benefits of being in the market
- Deriving the demand curve using consumer surplus
- Producer surplus and the gains from trade
- Deriving the supply curve using producer surplus
- How price controls, sales taxes, and deadweight loss reduce society’s welfare
Imagine a new game show called Name Your Price. The show’s host stands between two tables at which contestants are seated. On one side are three buyers; on the other side are three sellers. The host shows a picture of a beautiful red convertible Mustang. The buyers are told to type into their computer what price they are ...
Get Economics now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
