Suppose you're able to get a deal on a smartphone for ... and producer surplus—known as total economic surplus—is maximized at the equilibrium price and quantity. Market inefficiencies ...

Competitive equilibrium is a condition in which profit ... Whenever these quantities are not in balance, a shortage or surplus occurs on the market. Under these conditions, entrepreneurs have ...

Consumer surplus is the amount exceeding an equilibrium price the consumer is willing to pay. The equilibrium price is an idealized price, in which the demand for the good equals its supply.

Graphically, it is depicted as the triangle-shaped area formed by the aggregate demand curve and the equilibrium price level. To find the consumer surplus, a good knowledge of integral calculus is ...