ECO/365- WORKSHEET WEEK2

University of Phoenix Material

Efficiency of Markets

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.

Use the graph to correctly fill in the blanks below.

Price ($)

6 Supply

4

2

0 100 200 300 Quantity

Equilibrium price is _________ and equilibrium quantity is ___________.

Under free market conditions, consumer surplus is equal to ___________.

Under free market conditions, producer surplus is equal to ____________.

Demand

8