1.2.8 consumer surplus

Question 1

what is consumer surplus

Answer 1

Consumer surplus is the difference between the price that a consumer is willing and able to pay for a good or service and the market price that they actually pay.

Question 2

what is producer surplus

Answer 2

producer surplus is defined as the difference between the minimum price a producer would be willing and able to accept to supply a good/service and the actual market price they are paid