PRODUCER SURPLUS

PRODUCER SURPLUS

                             Producer Surplus is said the vice versa of CONSUMER SURPLUS… Here the main role played by producer according to his abaility to sell from actual price or in what price he wants to sell but in actually what actually he sold...

               We can state that the Producer Surplus is said when “DIFFRENCE BETWEEN THE PRICE PRODUCER IS WILLING TO SELL AND THE PRICE ACTUALLY SOLD”

EXAMPLE :-

           Lets understand this consumer surplus with an example ….  My uncle is the collectors of old vintage bike like YEZDE 250, Royal enfield 300 cc 60s model and like that, by some financial problem he had to sold his YEZDE BIKE which actual cost was worth ₹ 45000( in year 1980).  He wanted to sell his bike ₹45000 but in auction the price was hiked because it was vintage and rare piece of bike, the bike was sold in ₹80000. Now we can calculate the producer surplus by from example adoffrent between  the price producer is willing to sell is ₹45000 and he actually sold in ₹80000 so consumer suplus is ₹35000.