The difference between what a consumer is willing to pay for a product and the price they actually pay.
Because of diminishing returns to the variable factor.
"Too many cooks spoil the broth"
As you increase output (in the short run) workers get in each other's way and become less productive, increasing the cost of producing the next unit.
-∞ to 0 (Negaitive figure)
-1
→ Technology
→ Expectations
→ Number of Sellers
→ Prices of other Goods
→ Input prices
→ Taxes and Subsidies
A decrease in price
Shift left
(Less will be produced at any given price)
No change in Demand curve.
Quantity Demanded increases (extension/ movement along Demand Curve)
