Consumer and producer surplus

Question 1

define consumer surplus

Answer 1

the measure of welfare people gain from consuming goods and services, the difference between total amount consumers are willing and able to pay and the amount they actually pay

Question 2

define producer surplus

Answer 2

measure of welfare producers gain from producing goods and services, the difference between price producers are willing and able to supply a good or service for and the price they actually recieve

Question 3

if ped is inelastic

Answer 3

consumer surplus is greater than if ped is elastic

Question 4

if ped is elastic

Answer 4

lower production surplus for inelastic greater production surplus