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December 11th, 2012, 02:56 PM   #1
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Consumer and Producer Surplus

Alright so I'm having some trouble with consumer and producer surplus. The problem however, is not the math but the interpretation of the answer. I already solved the problem but the last part of the answer is to tell what it means. The answer to the problem is, consumer surplus is equal to -9. Normally i thought it would be interpreted as, "This means that the consumer is willing to pay $9 more than current market price on a given product." What I'm asking basically, is how does the negative affect the interpretation?
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December 11th, 2012, 03:14 PM   #2
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Re: Consumer and Producer Surplus

Wouldn't a surplus of -9 be a shortage of (+)9??
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December 11th, 2012, 04:34 PM   #3
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Re: Consumer and Producer Surplus

That's what i was thinking but I'm not exactly sure how to word it and the problem we went over in class had a positive surplus and he never mentioned how to interpret a negative value if we got one.
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