CONSUMER SURPLUS: Consumer is the one who take decisions about what to buy for satisfaction of bonds consumer take decisions on the basis of this preference his income and the price of the commodity which are prevailing in the market.
We can also denote the monetary gain obtained by the consumer because they are they are capable of consuming that product of which the price is less than that of the highest price.
Example: let's imagine you went to a store to buy some clothes that you wanted to buy from very long time, but you also know that this kind of cloth is usually expensive because of its brand. So you neglected it because of its cost after that you came to know that it's already on sale with the discount that means you are going to buy it by paying the willing amount .
PRODUCER SURPLUS:Producer is the one who produces and sell the product at that level of output at which his profit or maximum the amount which he gets in the form of profit or gain is known as surplus producer surplus is also producer welfare.
In the day today market the pricing of the product is set according to the demand that the consumer is going to consume. The manufacturers always try to produce the product for various sectors of people that is high low and Middle to meet the consumer demand according to which the supply.
EXAMPLE: we can take the example of iPhones as we all know that it's expensive but still most of the people purchase it and wait for the next model. And never the demand of iPhone Falls because the manufacturers always no knows about the consumer behaviour of the customer.
We can also denote the monetary gain obtained by the consumer because they are they are capable of consuming that product of which the price is less than that of the highest price.
Example: let's imagine you went to a store to buy some clothes that you wanted to buy from very long time, but you also know that this kind of cloth is usually expensive because of its brand. So you neglected it because of its cost after that you came to know that it's already on sale with the discount that means you are going to buy it by paying the willing amount .
PRODUCER SURPLUS:Producer is the one who produces and sell the product at that level of output at which his profit or maximum the amount which he gets in the form of profit or gain is known as surplus producer surplus is also producer welfare.
In the day today market the pricing of the product is set according to the demand that the consumer is going to consume. The manufacturers always try to produce the product for various sectors of people that is high low and Middle to meet the consumer demand according to which the supply.
EXAMPLE: we can take the example of iPhones as we all know that it's expensive but still most of the people purchase it and wait for the next model. And never the demand of iPhone Falls because the manufacturers always no knows about the consumer behaviour of the customer.
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