00:01
So here we've got some rapid -fire questions about consumer and producer surplus, right? so for three, let me replicate this market.
00:08
We have a market, which, as always, is a story between quantity and price.
00:13
We have a demand curve.
00:14
We have a supply curve.
00:16
That means we have an equilibrium point, right? and the equilibrium point divides the consumer surplus, the line above, and the producer surplus, the triangle below, right? so you see those two triangles in the diagram.
00:30
The top one is the consumer surplus.
00:32
And the bottom one is the producer surplus because this, remember, is the consumers.
00:38
And so the demand curve defines the consumer surplus and the supply curve is the producers.
00:45
Right.
00:45
So the supply curve defines the producer surplus, right? so since the supply is producer surplus, the supply curve is the one we're using to get the producer surplus...