what is producer and consumer surplus
Definition: Consumer surplus is defined as the difference between the consumers' willingness to pay for a commodity and the actual price paid by them, or the equilibrium price. Description: Total social surplus is composed of consumer surplus and producer surplus.
DEFINITION of 'Producer Surplus'. An economic measure of the difference between the amount that a producer of a good receives and the minimum amount that he or she would be willing to accept for the good. The difference, or surplus amount, is the benefit that the producer receives for selling the good in the market.