Consumer Surplus and economic Well-Being Consumer surplus, the amount that buyers are willing to pay for a good minus the amount they actually pay for it. measures the benefit that buyers receive from a good as the buyers themselves perceive it Harcourt, Inc. items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Consumer Surplus and Economic Well-Being Consumer surplus, the amount that buyers are willing to pay for a good minus the amount they actually pay for it, measures the benefit that buyers receive from a good as the buyers themselves perceive it
Producer Surplus o Producer surplus is the amount a seller is paid minus the cost of production. oIt measures the benefit to sellers participating in a market. H arc Inc items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Producer Surplus uProducer surplus is the amount a seller is paid minus the cost of production. uIt measures the benefit to sellers participating in a market
The costs of four possible Sellers ■■■ Seller Cost Mary s90 Frida 800 Georgia 600 Grandma 500 H arc Inc items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. The Costs of Four Possible Sellers... Seller Cost Mary $900 Frida 800 Georgia 600 Grandma 500