It can be derived from the market supply curve. Graphically, it is equal to the area above the supply curve and below the price. Example:

It can be derived from the market supply curve. Graphically, it is equal to the area above the supply curve and below the price. Example:

It can be derived from the market supply curve. Graphically, it is equal to the area above the supply curve and below the price. Example: A producer willing to sell a good for $2 but receiving a price of $5 gains a producer surplus of $3. Is it possible to add consumer and producer surplus?

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