Producer surplus refers to the difference between what producers are willing to sell a good for and what they actually receive. It represents their economic gain from selling a product at a price higher than their minimum acceptable price.
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Consumer Surplus: Consumer surplus is similar to producer surplus but from the perspective of buyers. It represents their economic gain from purchasing a product at a price lower than their maximum acceptable price.
Market Equilibrium: Market equilibrium occurs when supply and demand intersect, resulting in an optimal balance between quantity supplied and quantity demanded.
Elasticity: Elasticity measures how responsive consumers or producers are to changes in prices or income.