Consumer and producer surplus

Learning objectives

Define consumer surplus and producer surplus and identify each area on a demand and supply diagram

Calculate consumer and producer surplus as triangle areas for linear demand and supply curves

Analyse how shifts in demand or supply and changes in price alter consumer and producer surplus

Explain how the price elasticities of demand and supply affect the size of these changes in surplus

(A Level) Explain deadweight welfare loss as surplus lost to society when output moves away from the efficient level