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Producer Surplus
The discrepancy between the amount sellers are prepared to take for a product or service and the actual payment they get.
Consumer Surplus
The difference between the maximum price a consumer is willing to pay for a good or service and the actual market price they pay.
Demand Curve
A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.
Marginal Cost
The rise in overall expenses associated with the production of an extra unit of a good or service.
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