using the concepts of producer and consumer surplus explain the welfare implications of major brought on...

using the concepts of producer and consumer surplus explain the welfare implications of major brought on producers and consumer

Expert Solution

Consumer surplus is defined as the difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total amount that they actually do pay (i.e. the market price).

Consumer surplus is a measure of the economic welfare that people gain from purchasing and then consuming goods and services.

Producer surplus is an economic measure of the difference between the amount a producer of a good receives and the minimum amount the producer is willing to accept for the good. The difference, or surplus amount, is the benefit the producer receives for selling the good in the market.It is the measure of producer welfare.

Economic welfare is the total benefit available to society from an economic transaction or situation.

Economic welfare is also called community surplus.

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Rahul Sunny answered 2 years ago

explain the implications of the consumer surplus and producer surplus on economic welfare

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