Producer Surplus

the difference between the price sellers

receive for a good.
minimum or lowest price.
area below EP and above supply curve.
WA willing and able
Consumer Surplus
the difference between the maximum
price a buyer is willing and able to pay
for a good or service and the price
actually paid.
area above EP and below demand curve
Price Ceiling (Ceiling Price)
price control that would protect buyers
Market Equilibrium

by setting a price below the equilibrium

point.
maximum price above which legal trade
cannot be made.
maximum price above is illegal
Price Ceiling (Ceiling Price)
price control that would protect buyers
by setting a price below the equilibrium
point.
maximum price above which legal trade
cannot be made.
maximum price above is illegal

Shortage
is a market disequilibrium condition
such that quantity demanded exceeds
or is greater than quantity supplied at a
given price. Qd > Qs