Consumer + Producer Surplus

• Consumer surplus is the difference between the price consumers are willing and able to pay for a good or service and the price that they actually pay.
• Consumer surplus is normally a triangle shape found below the demand curve and above the price line.
• Consumer surplus can be found on a diagram by drawing a demand curve and identifying the area above the price line but below the demand curve.
• Consumer surplus is represented by the area above the price line but below the demand curve.
• Consumer surplus is calculated by subtracting the actual price paid from the maximum price consumers are willing to pay.
• Producer surplus is the difference between the price producers are willing and able to supply a good or service for and the price that they actually receive.
• Producer surplus is usually a triangle shape found above the supply curve and below the price line.
• Producer surplus can be found on a diagram by drawing a supply curve and identifying the area above the supply curve but below the price line.
• Producer surplus is represented by the area above the supply curve but below the price line.
• Producer surplus is calculated by subtracting the actual price received from the maximum price producers are willing to supply.
• Consumer surplus decreases when the price increases.
• Producer surplus increases when the quantity decreases.
• Producer surplus is the area above the supply curve beneath the price line.
• Consumer surplus is the area beneath the demand curve and above the new price line.
• Consumer surplus decreases when the quantity decreases.
• Producer surplus increases when the price increases.
• Society's surface is the sum of consumer and producer surplus.
• Producer surplus increases when the quantity increases.
• Consumer surplus is the area beneath the demand curve and above the price line.
• Consumer surplus decreases when the quantity increases.