Chapter 7 - Consumers, Producers, and the Efficiency of Markets

Marginal sellers

________ are the first to leave markets if the prices are lower.

demand curve

When a market consists of a lot of buyers when a buyer drops out it forms a(n) ________ because the effect is so minuscule.

Consumer surplus

________ measures the benefit that buyers receive from a good as the buyers themselves perceive it.

maximum amount

Willingness to pay: the ________ that a buyer will pay for a good.

Equality

________: the property of distributing economic prosperity uniformly among the members of society.

Externalities

________ are when a market experiences casualties such as the side effects of agricultural pesticides.

Benevolent Social Planner

The ________ is a powerful, well- intentioned dictator.

Free markets

________ choose sellers depending upon who produces goods at the lowest cost.

Welfare economics

________: the study of how the allocation of resources affects economic well- being.

Total surplus

________= (vale to buyers- the amount paid by buyers) + (amount received by sellers- cost to sellers)

Consumer surplus

________= value to buyers- the amount paid by buyers.