Describe and Analyze the Consequences of the Exchange of Goods

question 79

Essay

Describe and analyze the consequences of the exchange of goods, technology, and bacteria between the Old and New Worlds.

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.

Producer Surplus

The difference between the price that suppliers actually receive and the minimum price they would be willing to accept. It measures the net gains to producers and resource suppliers from market exchange. It is not the same as profit.

Soft Coal

Another term for bituminous coal; a type of coal known for its high moisture content and smoke-producing properties.