Basic purpose of this lecture is to presentation on Consumer Surplus and Producer Surplus. Consumer Surplus is the difference in what consumers are prepared to pay for the price with the product and what there’re actually paying for it in the market. Producer Surplus is the difference in what suppliers are prepared to sell the product for and what there’re actually receiving for it in the market. Here also briefly explain on Loss in Efficiency Taxation, Size of Deadweight Loss and Loss in Efficiency Subsidy with graphical examples.
Lecture on Consumer Surplus and Producer Surplus
