Consumer and Producer Surplus
Consumer surplus is the difference between what a consumer actually pays compared to what they are willing to pay.
A producer surplus is the difference between what a producer is willing to sell a product for, and what they actually sell it for.
These surpluses change when there are shifts in the curves.
A producer surplus is the difference between what a producer is willing to sell a product for, and what they actually sell it for.
These surpluses change when there are shifts in the curves.