CONSUMER AND PRODUCER SURPLUS Total Consumer Surplus Sum of economic surplus of all consumers Total Producer Surplus Sum of economic surplus of all producers Total Surplus Sum of consumer surplus and total producer surplus In a perfectly competitive market, Total Surplus is maximised exactly at the equilibrium price P*
CONSUMER AND PRODUCER SURPLUS Total Consumer Surplus Sum of economic surplus of all consumers Total Producer Surplus Sum of economic surplus of all producers Total Surplus Sum of consumer surplus and total producer surplus In a perfectly competitive market, Total Surplus is maximised exactly at the equilibrium price P*
ECON1010-Entire-Semester.docx