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Consumer and Producer Surpluses

Consumer and Producer Surpluses. Unit Four, Lesson Four Cook Economics. Consumer and Producer Surpluses. Demand is a measure of how much a consumer is willing and able to buy of a product at every price.

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Consumer and Producer Surpluses

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  1. Consumer and Producer Surpluses Unit Four, Lesson Four CookEconomics

  2. Consumer and Producer Surpluses • Demand is a measure of how much a consumer is willing and able to buy of a product at every price. • Sometimes you may get a product for less than you would have been willing to pay and the market price. • Consumer surplus—difference between what people are willing to pay and the market price.

  3. Consumer Surplus

  4. Producer Surplus • The same works for producers. They are often willing to sell an item for a price lower than what they end up receiving. • Producer surplus—difference between the market price which producers receive for their product and the price at which they are willing to sell their good

  5. Producer Surplus

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