# Consumer & producer surplus

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##### Intros

###### Lessons

**Consumer & Producer Surplus Overview:**__Consumer Surplus__- Willing to pay vs actually pay
- Algebraic Calculation of Consumer Surplus
- Graphical Calculation of Consumer Surplus
- An Example

__Producer Surplus__- Price producer receives vs minimum price producer accepts
- Algebraic Calculation of Producer Surplus
- Graphical Calculation of Producer Surplus
- An Example

__Economic Surplus__- The total benefit from consumer and producer
- Sum of consumer surplus and producer surplus
- Goal is to maximize economic surplus
- An Example

##### Examples

###### Lessons

**Finding the Consumer Surplus**

Suppose the demand curve is*P*= 500 - 20*Q*and*P*= 200 + 5*Q.*- Suppose the demand curve is
*P*= 800 - 5*Q*and*P*= 800 + 5*Q.* **Finding the Producer Surplus**

Suppose the demand curve is*P*= 400 - 20*Q*and*P*= 300 + 5*Q.*- Suppose the demand curve is
*P*= 300 - 3*Q*and*P*= 250 +*Q.* **Finding the Economic Surplus**

Suppose the demand curve is*P*= 500 - 10*Q*and*P*= 300 + 5*Q.*