Author Question: The difference between the price the consumer is willing to pay for a good or service and what he ... (Read 61 times)

Zoey63294 · **on:** Jun 30, 2018

The difference between the price the consumer is willing to pay for a good or service and what he would have to pay for that unit is called:
a. the total gains from trading that unit.
b. the gain in producer surplus.
c. the gain in consumer surplus.
d. the total surplus.

Question 2

The theory that private negotiations have the potential to make some people better off without making anyone worse off when negative externalities are present is known as:
a. the Negative Externality Theorem.
b. the Sexton Theorem.
c. the Coase Theorem.
d. the Abatement Theorem.