Economic surplus refers to two related quantities: consumer surplus and producer surplus. The producer surplus is the difference between the actual price of a good or service–the market price ...

Consumer Surplus and Producer Surplus . A producer surplus combined with a consumer surplus equals overall economic surplus, or the benefit provided by producers and consumers interacting in a ...

With the introduction of a tax, the consumer and producer surplus could both fall. If in the earlier example a government sales tax of $1 was levied on any sale of the product, the price of the ...

Surplus is a concept in economics that describes the amount of utility or value that consumers and producers receive when making transactions. Every producer and consumer in an economy wants to ...

Competition, however, should encourage the producer to lower prices and share the surplus gain with consumers. This is one reason why antitrust laws exist in the U.S. -- to protect the economic ...