Determine the producer and consumer surplus based on the graph given below. How to find consumer surplus and producer surplus? 1. Describe how consumer surplus and producer surplus are measured. 2. Using a graph show what happens to consumer surplus when a new technology ...
In the above consumer surplus graph, the triangle XYP represents consumer surplus. Area XYQO represents the entire benefit from consumer, for using quantity Q at price P. But, if consumers buy goods at the market price for a particular quantity, their total expense would be represented by area...
Answer and Explanation:1 Consumer surplus is when the price that the consumer expects to pay based on the utility that he will derive from the commodity is more than the... Learn more about this topic: Economic Surplus Definition & Graph ...
A producer surplus is shown graphically below as the area above the producer'ssupply curvethat it receives at the price point (P(i)), forming a triangular area on the graph. The producer’s sales revenue from selling Q(i) units of the good is represented as the area of the rectangle f...
Graph In the above consumer surplus graph, the triangle XYP represents consumer surplus. Area XYQO represents the entire benefit from consumer, for using quantity Q at price P. But, if consumers buy goods at the market price for a particular quantity, their total expense would be represented ...