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.
Willingness to pay Individual consumer surplus Total consumer surplus Consumer surplus Cost Individual producer surplus Total producer surplus Producer surplus Total surplus Property rights Economic signal Inefficient Market failure | any piece of information that helps people make better economic decisions. the failure of a market to be efficient. the total net gain to consumers and producers from trading in a market; the sum of the producer surplus and the consumer surplus. the sum of the individual consumer surpluses of all the buyers of a good in a market. describes a market or economy in which there are missed opportunities: some people could be made better off without making other people worse off. the sum of the individual producer surpluses of all the sellers of a good in a market. the net gain to an individual seller from selling a good; equal to the difference between the price received and the seller’s cost. (of seller) the lowest price at which a seller is willing to sell a good. the rights of owners of valuable items, whether resources or goods, to dispose of those items as they choose. a term often used to refer both to individual consumer surplus and to total consumer surplus. a term often used to refer both to individual producer surplus and to total producer surplus. the net gain to an individual buyer from the purchase of a good; equal to the difference between the buyer’s willingness to pay and the price paid. the maximum price a consumer is prepared to pay for a good. |