ANTH 1003 Chapter : 2 19 13
Document Summary
Recall the discussion concerning supply, demand, and the tendency toward equilibrium. Every consumer willing to pay market price may consume. Every supplier willing to sell at market price may supply. Marginal benefits of consumption equal marginal cost of production. When the qs or the qd is not equal, a shortage or surplus will result. When equal, more units are actually consumed, and are sold at pe. Both consumers and producers enjoy benefit by trading at this price. Because these units sell at a price both greater than the producers minimum, both the consumer and the producer achieve a benefit. The difference is referred to as the surplus. The difference between the max. buying price and the price actually paid. The difference between the price actually received and the minimum selling price. The combined surplus gained by both the consumer and the producer.
