What is it called when the producer and the consumers agree on a price?

Supply and demand, in economics, relationship between the quantity of a commodity that producers wish to sell at various prices and the quantity that consumers wish to buy. The resulting price is referred to as the equilibrium price and represents an agreement between producers and consumers of the good.

When quantity demanded is the same as quantity supplied the result is called?

equilibrium. the point at which quantity demanded and quantity supplied are equal.

Which of the following best describes producer surplus?

Which of the following best describes producer surplus? Revenue minus variable costs. Revenue minus variable plus fixed costs. Producer surplus is the difference between the total revenue that sellers receive from selling a given amount of a good and the total variable cost of producing that amount.

Which of the following statements best describes excess supply or surplus?

Which of the following statements best describes excess supply, or surplus? The area between the supply and demand curves above the equilibrium point is called excess supply, or surplus. the area between the supply and deman cuves below the equilibrium point is called excess demand or surplus.

What does producer surplus illustrate?

Producer surplus is the difference between how much a person would be willing to accept for given quantity of a good versus how much they can receive by selling the good at the market price. The difference or surplus amount is the benefit the producer receives for selling the good in the market.

What is the relationship between total surplus and economic efficiency group of answer choices?

An economy experience economic efficiency when total surplus get maximized. Total surplus is the aggregate of producer and consumer surplus. Total surplus get maximized when both consumer and producer surplus is maximum.

Is economic surplus good or bad?

A surplus isn’t necessarily desirable. For example, a manufacturer who over-projects future demand for a given product may create too many unsold units, which may consequently contribute to quarterly or annual financial losses.

Where is shortage on a graph?

A shortage can also be shown on a graph; its size is the quantity gap between the demand curve and supply curve at a price below the equilibrium price. A surplus, also called excess supply, occurs when the supply of a good exceeds demand for that good at a specific price.