Social Sciences and History / Unit 13 SSH 1219 short lesson, about 20 seconds
Consumer Surplus, Producer Surplus, Deadweight Loss
Captions available
The idea
Consumer surplus is what consumers would have paid minus what they paid. Producer surplus is the price received minus the least producers would have accepted. Their sum, social surplus, is largest at equilibrium; deadweight loss is surplus lost at an inefficient quantity.
In practice
Two triangles meeting at the equilibrium point.
Where people slip
Economic and total surplus are synonyms for social surplus.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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