Learn the difference between consumer surplus and economic surplus, how the concepts are related, and the important theoretical and economic implications of both.

Consumer surplus is the amount exceeding an equilibrium price the consumer is willing to pay. The equilibrium price is an idealized price, in which the demand for the good equals its supply. If the ...

Paul Solman: Today’s Paul Samuelson excerpt explains the concept of “consumer surplus.” See the other transcripts we posted this week on the basics of economics here and here.) To Samuelson, it was ...

Consumer surplus and producer surplus figures are derived from demand and supply curve analysis. The demand curve shows how many quantities of a product consumers are willing to purchase at different ...

Budget surpluses occur when income exceeds expenses in any budget. Economic surplus arises when supply outstrips demand, lowering prices. Producer surplus increases with cost reductions from ...