Consumer and Producer Surplus

Read this article and attempt several practical problems related to consumer and producer surplus by answering the "Try It" quiz questions. Check your answers after you're done.


deadweight loss:

the loss in social surplus that occurs when a market produces an inefficient quantity

producer surplus:

the value to producers of their sales above their cost of production

social (or economic or total) surplus: 

the sum of consumer and producer surplus at some quantity and price of output