SECTION 2: BUSINESS ECONOMICS
Sep 12, 2010 · society pays for the price ceiling, or allocative. inefficiency. Ex. Rent controls. Price Floor. Price is locked in above equilibrium. Creates a surplus (QS – QD) due to QS exceeding QD Consumer and Producer Surplus. Definition of Consumer Surplus – the difference between the maximum price a consumer is willing to pay and the actual price. ................
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