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Consumer & Producer Surplus - Coggle Diagram
Consumer & Producer Surplus
Consumer Surplus
Outward shift in supply = increase in consumer surplus
Inward shift in demand = decrease in consumer surplus
Evaluation - Customer Needs
Price
This is graphed BUT consider other factors
Quality
Convenience
Are those factors delivered as better/worse than expected?
Choice
Becomes greater with more inelastic (price insensitive) products
Producer Surplus
Outward shift in demand = increase in producer surplus
Evaluation - Rewards for operation
Philanthrophy
Social Change
Environmental
Main reason for operation?
Personal Enjoyment & Fulfillment
Consumer Surplus Definition
The difference between the price that consumers are willing and able to pay for a good or service and the amount they actually pay.
Producer Surplus Definition
The difference between the price producers are willing and able to supply a good or service for and the price they actually receive.