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Summary IB Economics HL Consumer and Producer Surplus Cheat Sheet
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Handwritten IB Economics HL Consumer and Producer Surplus Cheat Sheet with detailed diagrams and analysis, along with formulas
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surplus PConsumer
Surplus
a
◦
s =
MC
•
Producer Surplus
C,
↳
(the highest price consumers CONSUMER
←
( Price relieved by firms for
SURPLUS
willing to
' '
for selling good)
are their
pay a ( the lowest
-
good)
-
( the price actually paid ) lo willing to accept
price they t are
D= MB
°
Below Demand Curve PRODUCER produce the
good )
SURPLUS
& Below Above
price paid by supply curve & below the
•
consumer
so
upto Qty purchased ☆ Allocate Zffeciency achieved at market equilibrium
price relieved firm upto
by the
.
:
,
when MB =
Me & social surplus is maximum / Social Welfare is maximum
Qty produced
.
.
↳
social
/ community surplus = Consumer Surplus + Producer
Surplus
At Market Equilibrium :
Marginal Benefit =
Marginal cost ;
↳
Market producing Qty of goods making the best
possible of resources
: -
is .
use scarce .
Consumer Surplus =
1 ✗ b × h ( of consumer
surplus A)
=
( P intercept of Demand -
P intercept at And ) ✗ Bs
2
2
Producer Surplus b h ( P intercept P intercept Qsdd ) Qs
1- Supply at
✗
of
= ✗ = -
✗
2
2
↳ In where has P
cases
supply curve no
intercept
A
Trapezium
atb,
PS =
of =
(
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