The point where the quantity supplied equals the quantity demanded.

The price at which the quantity supplied equals the quantity demanded.

The quantity at which the quantity supplied equals the quantity demanded.

The difference between what consumers are willing to pay and what they actually pay.

The difference between an individual's willingness to pay and the market price.

The sum of all individual consumer surpluses in a market.

The difference between what producers receive and what they are willing to accept.

The difference between the market price and a producer's minimum acceptable price.

The sum of all individual producer surpluses in a market.

The sum of consumer and producer surplus, maximized at equilibrium.

The price of gasoline is determined by the intersection of supply and demand, reflecting equilibrium.

If you buy an item on sale, your consumer surplus is the difference between what you would have paid and the sale price.

If a farmer sells crops for more than their minimum acceptable price, they gain producer surplus.

Consumer surplus decreases because the difference between willingness to pay and the market price shrinks.

Producer surplus decreases because the difference between the market price and minimum acceptable price shrinks.

Market equilibrium leads to allocative efficiency because resources are allocated to their most valued uses, maximizing total surplus.

A shortage typically reduces consumer surplus and can increase producer surplus if prices rise, but it also creates deadweight loss.

A surplus typically increases consumer surplus (due to lower prices) and reduces producer surplus, also creating deadweight loss.

Consumer surplus is the area below the demand curve and above the market price, representing the total benefit consumers receive.

Producer surplus is the area above the supply curve and below the market price, representing the total benefit producers receive.

Consumer surplus is the benefit to buyers; producer surplus is the benefit to sellers. They are on opposite sides of the equilibrium price.

A price ceiling is a maximum price; a price floor is a minimum price. Ceilings cause shortages; floors cause surpluses.

A shortage is when demand exceeds supply; a surplus is when supply exceeds demand. Shortages put upward pressure on price; surpluses put downward pressure.

Individual consumer surplus is for one buyer; total consumer surplus is the sum of all individual surpluses.

Individual producer surplus is for one seller; total producer surplus is the sum of all individual surpluses.

A tax increases price and decreases quantity; a subsidy decreases price and increases quantity. Both create a wedge between buyer and seller prices.

Both restrict trade, but a tariff generates government revenue while a quota does not (revenue goes to quota holders).

Allocative efficiency means resources are used where they are most valued by society. Productive efficiency means goods are produced at the lowest possible cost.

Positive economics is about facts and cause-and-effect relationships. Normative economics is about value judgments and what *should* be.

Microeconomics studies individual markets and decisions. Macroeconomics studies the economy as a whole.