Glossary · Micro · Market analysis and welfare

Producer surplus

The gain sellers get from receiving more than the least they would have accepted. On the graph it is the area above the supply curve and below the price, out to the quantity sold.

Also called: PS

Practice reading the supply and demand graphTaught in: Producer Surplus

Related terms

Consumer surplusTotal surplusDeadweight loss (DWL)

More from market analysis and welfare

Allocative efficiencyMarket failureNegative externalityPrice ceilingPrice floorSubsidy

Definitions are the start

See the term used, not just defined.

The full course teaches every term in context, with worked examples, interactive graphs and practice questions that remember what you get wrong.
Read the lessonStart the course