The Difference Between the Total Amount That Producers Would Have

question 97

Multiple Choice

The difference between the total amount that producers would have been willing to accept for the total quantity produced in a market and what they actually received at the market clearing price is called

• A) production excess.
• B) excess demand.
• C) market surplus.
• D) producer surplus.

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Definitions:

Indifference Curve

A set of points, each point representing a combination of goods X and Y, all of which yield the same total utility.

Marginal Utility

The supplementary contentment or advantage received from the consumption of one more unit of a product or service.

Total Utility

The total satisfaction received by a consumer from consuming a certain quantity of goods or services.

Labor Supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor that workers are willing to offer at different wage rates.