Christina Majaski writes and edits finance, credit cards, and travel content. She has 14+ years of experience with print and digital publications. In mainstream economics, consumer surplus is the ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Erika Rasure is globally-recognized as a ...

Consumer surplus and producer surplus figures are derived from demand and supply curve analysis. The demand curve shows how many quantities of a product consumers are willing to purchase at different ...

Producer surplus is an economic term that describes both the minimal price that a company will accept to sell its product for and also the maximal price that the company can sell the same product for.

“Deadweight loss” is a term from economics that describes an overall economic or societal loss due to market inefficiencies. Imagine a situation where what buyers are willing to pay for a product ...

THE first diagram shows a demand curve and a supply curve for some hypothetical good. Usually, as the price of a good comes down, the quantity demanded increases; the demand curve therefore slopes ...

Budget surpluses occur when income exceeds expenses in any budget. Economic surplus arises when supply outstrips demand, lowering prices. Producer surplus increases with cost reductions from ...