Saturday, July 28, 2018

Willingness of seller and consumer about the product

Consumer surplus:
The amount that a consumer is paying according to the willingness which minus the original amount paid by the consumer.
Example: in a clothing shop each and every consumer will pay according to the willingness about that particular product,so product price will minus according to consumer.

Producer surplus:
The amount that a producer is selling according to the willingness which minus the original amount sold by the producer.
Example: in a clothing shop every seller will sell according to the willingness about a particular product to the customer by seller.

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