The difference between the highest price a consumer will pay and the actual market price is called _ surplus; the difference between the actual market price and the lowest price a seller will accept is called _ surplus

Economics Dec 13, 2020

The difference between the highest price a consumer will pay and the actual market price is called _____ surplus; the difference between the actual market price and the lowest price a seller will accept is called _____ surplus.

Expert Solution

The difference between the highest price a consumer will pay and the actual market price is called consumer surplus; the difference between the actual market price and the lowest price a seller will accept is called producer surplus. In both cases, there will be a rightward (increase) shift in market quantity until it reaches the market equilibrium quantity.

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