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Graph illustrating consumer (red) and producer (blue) surpluses on a supply and demand chart

In mainstream economics, economic surplus, also known as total welfare or Marshallian surplus (named after Alfred Marshall), refers to two related quantities. Consumer surplus or consumers' surplus is the monetary gain obtained by consumers because they are able to purchase a product for a price that is less than the highest price that they would be willing to pay. Producer surplus or producers' surplus is the amount that producers benefit by selling at a market price that is higher than the least that they would be willing to sell for; this is roughly equal to profit (since producers are not normally willing to sell at a loss, and are normally indifferent to selling at a breakeven price).

In Marxian economics, the term surplus may also refer to surplus value, surplus product and surplus labour.


Economic surplus sections
Intro   Overview   Consumer surplus   See also   References  Further reading  

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{{#invoke:Hatnote|hatnote}}

Graph illustrating consumer (red) and producer (blue) surpluses on a supply and demand chart

In mainstream economics, economic surplus, also known as total welfare or Marshallian surplus (named after Alfred Marshall), refers to two related quantities. Consumer surplus or consumers' surplus is the monetary gain obtained by consumers because they are able to purchase a product for a price that is less than the highest price that they would be willing to pay. Producer surplus or producers' surplus is the amount that producers benefit by selling at a market price that is higher than the least that they would be willing to sell for; this is roughly equal to profit (since producers are not normally willing to sell at a loss, and are normally indifferent to selling at a breakeven price).

In Marxian economics, the term surplus may also refer to surplus value, surplus product and surplus labour.


Economic surplus sections
Intro   Overview   Consumer surplus   See also   References  Further reading  

PREVIOUS: IntroNEXT: Overview
<<>>