Wednesday, 8 October 2008

Consumer surplus and producer surplus

Consumer surplus is the surplus ubility or satifaction received by consumer.
Production surplus is the surplus reward by the producer.
If indirect tax is put on the product. This will reduce both producer and consumer surplus as shown below.

1 comment:

chris sivewright said...

"Consumer surplus is the surples ubility or satifaction recivie by consumer.
Production surplus is the surpless reward by the produer.
if indirect tax is put on the product this will reduce both producer and consumer surples as shonen bellown."

There are EIGHT spelling mistakes in your very short post!