Study notes

Producer Surplus

  • Levels: AS, A Level
  • Exam boards: AQA, Edexcel, OCR, IB, Other, Pre-U

What is meant by producer surplus?

Producer surplus is a measure of producer welfare. It is measured as the difference between what producers are willing and able to supply a good for and the price they actually receive

Producer surplus
Revision presentation on producer surplus

Shifts in demand and supply curves and the effect on producer surplus

Producer surplus and changes in market prices
Total economic welfare = consumer surplus + producer surplus
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