Welfare Surplus

Surplus is defined as the extra benefit to society that a given good’s price gives to society. This can be split into producer and consumer surplus where producer surplus would be the extra profit they generate per good from a certain price level whilst consumer surplus is the utility provided by a product for its price level.

Consumer Surplus:

--

--

--

Prospective Economics Student

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Monetary policy sentiment index: part II

How will Joe Biden’s Presidency Affect Home Prices? (Part 1)

What if there’s no affordable insurance to buy?

Are China’s medical moguls as dangerous as we think?

Bubble is Coming?

Short Term Pain for Long Term Gain

The Reason Millennials Can’t Afford To Buy Houses Has Nothing To Do With Avocados

DISASTER CAPITALISTS ABIDE

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
PasiduPerera

PasiduPerera

Prospective Economics Student

More from Medium

Golden Spike, French & West Ridge Trail

Why a Partnership Approach Matters When Setting Up Your Supply Chain

What the heck is crypto? And why is everyone talking about it?

Colbeck Capital’s Jason Colodne Explains how the Dot-Com Bubble Burst