The difference between consumer surplus and producer surplus
Added by Derrick R.
Step 1
Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay. It represents the benefit consumers receive from purchasing a product at a lower price than the maximum they are willing to Show more…
Show all steps
Your feedback will help us improve your experience
Sanchit Jain and 89 other Macroeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
What is producer surplus? How is it illustrated on a demand and supply diagram?
What is producer surplus? How does producer surplus change as the equilibrium price of a good rises or falls?
Majid B.
What is consumer surplus? How is it illustrated on a demand and supply diagram?
Recommended Textbooks
Principles of Economics
Macroeconomics
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD