Coupon Accepted Successfully!

Consumer & Producer Surplus
  • Consumer surplus is the difference b/w what a consumer is willing to pay for a good or service & what he actually pays for it.
  • Producer surplus is the difference b/w the price a producer receives for a unit output & minimum supply price for (opportunity cost of) that unit.
  • Marginal social benefit is the sum of all consumers’ marginal benefit from a good or service. The marginal social benefit curve is the market demand curve for the good or service.


Q: If a consumer is ready to pay $300 for i-phone, but has to pay only $199, the difference of $101 is?
  • Consumer deficit
  • Producer surplus
  • Consumer surplus

Consumer surplus


Test Your Skills Now!
Take a Quiz now
Reviewer Name