00:01
So here we are talking about the concept of market surplus.
00:04
I'm gonna reproduce the diagram, but the diagram here is already great, right? it's filled in, it looks wonderful.
00:10
We have a supply curve, right? we have a demand curve, and that means we have an equilibrium, right? the equilibrium here is at the right point.
00:22
The free market equilibrium is at 570 and 180.
00:27
The consumer surplus, right, is up here.
00:31
It's shaded exactly as it is in the picture.
00:34
The producer surplus is down here, right? it is shaded exactly correctly in the picture, right? the cs is the difference between demand and price.
00:47
Whereas the producer surplus is the area between supply and price, right? representing the benefit versus the cost, right? so the difference between each of these is the difference between the benefit someone is getting versus the cost that they're paying...