Where Does Producer Surplus Get Its Name? That Is, Why

question 179

Essay

Where does producer surplus get its name? That is, why do economists call it a surplus?

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Definitions:

Reinforcement

In psychology, it refers to any stimulus that strengthens or increases the probability of a specific response.

Negative Reinforcement

A process in behavior analysis where a response is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Respondent Behavior

Behavior that occurs as an automatic response to a certain specific stimulus.

Seat Belt

A safety device in vehicles designed to secure the occupant against harmful movement that may result during a collision or a sudden stop.