Referring to question 1: The amount of consumer surplus in this market is $_____. Make sure you round your answer to two decimal places (and include the decimal point and two decimal places to the right in your answer, and if your answer requires a comma, put the comma in the appropriate place).
Consumer surplus: The economic measurement of a consumer's excess benefit is known as consumer surplus; it is sometimes also termed as buyer's surplus. It is measured by comparing the consumer's willingness to pay for a product to the actual price they have paid or the equilibrium price. It is used along with the producer surplus in order to measure the economic surplus sometimes also termed as total welfare.
Producer surplus: It can be defined as the difference between the amount of money that the producer is willing to accept and the price at which he actually sells the product. It is simply the excess of the price that the consumer pays for the commodity, over the minimum price that the producer is willing to accept.
The producer surplus along with the consumer surplus constitutes the total surplus of an economy. It is also termed as a measure to determine the welfare of the producer.
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