consumer surplus - extra satisfaction that consumers gained by paying a price below the price they are prepared to pay, producer surplus - extra revenue that producers psychologically made by selling at a price higher than the price they are prepared to receive, allocativeefficiency - it is achieved at the equilibrium level in the market where D=S/MB=MC, price mechanism - it has functions of signalling, incentive and rationing, excess demand - it happens when quantity demanded exceeds quantity supplied, one - all supply curves starting from original point have a value of this, subsidy - amount of money provided by government to firms in order to lower its costs of production, indirect tax - tax imposed on expenditure of goods and services,

market efficiency

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