Consumer and Producer Surplus is an economic concept that measures the benefit or gain that consumers and producers receive from participating in a market. It is the difference between the amount a consumer is willing to pay for a good or service and the amount they actually pay, and the difference between the amount a
In mainstream economics, economic surplus, also known as total welfare or total social welfare or Marshallian surplus, is either of two related quantities:Consumer surplus, or consumers' surplus, is the monetary gain obtained by consumers because they are able to purchase a product for a price that is less than the highest price that they would be willing to pay. Producer surplus, or producers' surplus, is the amount that producers benefit by selling at a market price that is higher than the least that they would be willing to sell for; this is roughly equal to profit.