Ten princiles of ecanomic

Consumers, Producers, and the Efficiency of Market

Consumer surplus

We know that buyers, producers, sellers participate in the market out of self-interest, and buyers try to pay as low a price as possible, while sellers try to sell as high a price as possible. Alternative prices are determined by the power of supply and demand.

consumer surplus the ability of consumers in this market to be willing to pay a


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$850

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$800

$1200