How To Calculate

Learn how to calculate anything
Menu
  • bmi
Home
profit
How to Calculate Total Surplus.
profit

How to Calculate Total Surplus.

Rosemary Njeri

The total surplus also known as the total welfare in a market is a measure of the total well being of all participants in a market. It is the sum of consumer surplus and producer surplus.

Formula to calculate total surplus.

Calculate Total Surplus.

Consumer is the difference between the maximum amount a consumer is willing to pay and the actual amount they pay.

Producer surplus is the difference between the amount the producer is willing to supply goods for and the actual amount received by him when he makes the trade.

Example:

Calculate the total surplus if the producer surplus is $ 500,000 and the consumer surplus is 400,000.

 Calculate Total Surplus.

Therefore, the total surplus is $ 900,000.

Share
Tweet
Reddit
Pinterest
Email
Prev Article
Next Article

Related Articles

How to Calculate Economic Profit.
What is Economic Profit? Ahead of discussing how to calculate …

How to Calculate Economic Profit.

How to Calculate Gross Profit Percentage.
What is Gross Profit? Prior to talking about how to …

How to Calculate Gross Profit Percentage.

Popular Posts

    Categories

    learntocalculate.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com.

    How To Calculate

    Learn how to calculate anything

    Pages

    • About Us
    • Contact Us
    • Privacy Policy
    Copyright © 2025 How To Calculate

    Ad Blocker Detected

    Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.

    Refresh