Producer Surplus Flashcards
1
Q
What is producer surplus??
A
The difference between what producers are willing and able to supply a good for, and the price they actually receive for it
2
Q
What is producer surplus a measure of??
A
A measure of producer welfare, looks at the benefits suppliers get from certain prices
3
Q
What is total surplus??
A
Consumer surplus + producer surplus
The total gain to society for the production and consumption of a good
