What are the consumer and producer surplus, Biology

Assignment Help:

What are the consumer and producer surplus?

Consumer and producer surplus:

At equilibrium P1Q1 (as point B, here demand equals supply)

  • Consumer surplus:

It is equal to area P1AB, it represents the difference among the amounts buyers into aggregate were willing to pay for the good or service compared to what they really did pay (P1), and in effect the usefulness the buyer received but they did not pay for.

191_Consumer and producer surplus.png

  • Producer surplus:

It is equal to area P1BC that represents the difference among the price firms in approx would have accepted for the good or the service supplied compared to that they in fact did receive (P1).


Related Discussions:- What are the consumer and producer surplus

Environment , Environment All organisms are intimately dependent on the ...

Environment All organisms are intimately dependent on the environment from which they derive their sustenance. Organisms from virus to man are obligatorily dependent on the envi

Rock be well-known from living things, Critical thinking the organization o...

Critical thinking the organization of a rock is much simpler than that of living things. By what other criteria can a rock be well-known from living things? Rocks are not comp

Cell and molecular, Compare and contrast the effect of a deletion in the op...

Compare and contrast the effect of a deletion in the operator of the lactose operon with one in the operator of the tryptophan operon.

Types of respiratory organs, Types of Respiratory Organs Respiratory o...

Types of Respiratory Organs Respiratory organs may be of the following types: Those that have respiratory surface turned out forming an evagination. These are called gi

Exchange of cells between the mother and the fetus, Q. Is there an exchange...

Q. Is there an exchange of cells between the mother and the fetus through the placenta? Under usual conditions there is no passage of cells across the placenta during gestation

Define contains permitted synthetic food colour, Normal 0 fa...

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4

Arthropod classes characterized by number of limbs, Q. How are the three ma...

Q. How are the three major arthropod classes characterized according to the number of limbs? Most crustaceans have five pairs of limbs. Arachnids present four pairs and Insects

Counselling technique of diabetic patient, Counselling a diabetic patient a...

Counselling a diabetic patient and their family members is very important as patient has to modify the life style and diet and needs family support. Therefore it is important for y

Are nematodes triploblastic or diploblastic animals, Q. Are nematodes tripl...

Q. Are nematodes triploblastic or diploblastic animals? Just like platyhelminthes, nematodes are triploblastics that is they present three germ layers (ectoderm, endoderm and m

Digestion and feeding mechanism, state 5 notification and feeding habits in...

state 5 notification and feeding habits in some animals

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd