Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
consumer surplus producer surplus price ceiling excess demand transfer deadweight loss (DWL) nonbinding price ceiling price floor (or price support) excess supply nonbinding price floor quota tax incidence subsidy | The difference between the quantity supplied and the quantity demanded at a price floor. A price floor set at a level below equilibrium price. The difference between the price producers actually receive for their goods and the price at which they are willing to sell them. A price regulation that sets the lowest price that can be paid legally for a good or service. The difference between the amount consumers would be willing to pay for a good or service and the amount they actually have to pay. A payment by the government to a buyer or seller of a good or service. Surplus that moves from producer to consumer, or vice versa, as a result of a price regulation. A price ceiling set at a level above equilibrium price. The difference between the quantity demanded and the quantity supplied at a price ceiling. Who actually pays a tax. A price regulation that sets the highest price that can be paid legally for a good or service. A regulation that sets the quantity of a good or service provided. The reduction in total surplus that occurs as a result of a market inefficiency. |