Consumer Surplus And Producer Surplus

Question 1

Consumer surplus

Answer 1

The difference between what customers are willing to pay and what they are able to pay for a product

Question 2

Producer surplus

Answer 2

The difference between what firms are willing to sell for and what they are able to sell the product for

Question 3

Derived demand

Answer 3

Increase in demand for one good automatically increases demand for another good or service- raw material or labour