Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. See our User Agreement and Privacy Policy.
Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. See our Privacy Policy and User Agreement for details.
This section focuses on consumer and producer surplus – both are measures of economic welfare. Top answers often make frequent reference to these concepts in their answers. Please ensure you can show consumer surplus on a demand and supply diagram and explain how changes in demand or supply might affect consumer surplus. Likewise with producer surplus, be able to show the area of producer surplus on a diagram and analyse the effects of shifts in supply and demand on the revenues / returns to producers in markets.
Login to see the comments