# Consumer & producer surplus

##### Intros
###### Lessons
1. Consumer & Producer Surplus Overview:
2. Consumer Surplus
• Willing to pay vs actually pay
• Algebraic Calculation of Consumer Surplus
• Graphical Calculation of Consumer Surplus
• An Example
3. Producer Surplus
• Price producer receives vs minimum price producer accepts
• Algebraic Calculation of Producer Surplus
• Graphical Calculation of Producer Surplus
• An Example
4. 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
1. Finding the Consumer Surplus
Suppose the demand curve is P = 500 - 20Q  and  P = 200 + 5Q.
1. Find the market equilibrium
2. Find the consumer surplus
2. Suppose the demand curve is P = 800 - 5Q  and  P = 800 + 5Q.
1. Find the market equilibrium
2. Find the consumer surplus
3. Finding the Producer Surplus
Suppose the demand curve is P = 400 - 20Q  and  P = 300 + 5Q.
1. Find the market equilibrium
2. Find the producer surplus
4. Suppose the demand curve is P = 300 - 3Q  and  P = 250 + Q.
1. Find the market equilibrium
2. Find the producer surplus
5. Finding the Economic Surplus
Suppose the demand curve is P = 500 - 10Q  and  P = 300 + 5Q.
1. Find the market equilibrium
2. Find the consumer surplus
3. Find the producer surplus
4. Find the economic surplus