Consumer Surplus

&
Producer Surplus
Dr M Manjunath Shettigar
MA (Econ), MBA, MPhil, PhD

Professor,
Department of Professional Studies,
Christ University,
Bangalore - 560029
Consumer surplus

Consumer surplus is a measure of consumer

welfare.

It is measured as the difference between the

price consumers are willing to pay for a good
(based on their expected satisfaction - utility) and
what they actually pay (i.e. the price in the
market).
Consumer surplus
Consumer surplus
Producer surplus

Producer surplus is a measure of producer welfare. It is

measured as the difference between what producers are
willing and able to supply a good for and the price they
actually receive.
Producer surplus
Producer surplus
Value creation & Value
Capture strategies for
companies

Just for understanding, not

for exam
Value creation & capture