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How to Calculate
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and Producer Surplus
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3:49
tutor2u.net
Explaining Consumer Surplus
What is consumer surplus? When there is a difference between the price that you pay in the market and the value that you place on the product, then the concept of consumer surplus becomes a useful one to look at. This is an important idea that you can use on many occasions in your exams.
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SOLVED:In Exercises 71-74, (a) graph the systems representing the consumer surplus and producer surplus for the supply and demand equations and (b) find the consumer surplus and producer surplus. Demand p = 50 - 0.5x Supply p = 0.125x
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