1. Math 140 5.5 – Additional Applications to Business and Economics 1

2. Suppose there are 4 consumers in the market for burritos: Christine, David, Elida, and Joshua. The demand curve is shown (so, for example, David is willing to buy a burrito per day at a price of $7). The current market price line (at $5) is also shown. 2

3. 3 The total differences between the prices consumers are willing to pay and the prices they actually pay is called _______________________.

4. 4 consumer surplus

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11. In general, consumer surplus is the area between the demand curve and the price line. 11

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13. The ________________________ is simply the area under the demand curve. 13

14. The ________________________ is simply the area under the demand curve. 14 total willingness to spend

15. The ________________________ is simply the area under the demand curve. 15 total willingness to spend

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17. The total differences between the prices producers actually receive and the prices at which they are willing to sell is called _________________. It is the area between the price line and the supply curve. 17

18. The total differences between the prices producers actually receive and the prices at which they are willing to sell is called _________________. It is the area between the price line and the supply curve. 18 producer surplus

19. The total differences between the prices producers actually receive and the prices at which they are willing to sell is called _________________. It is the area between the price line and the supply curve. 19 producer surplus

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