PRODUCER

SURPLUS
COMPILED BY:

NGUYỄN THANH NGÂN (1-2-3)

PHẠM ĐÀO TUYẾT NHUNG (3-4)
 Table of
Contents

PRODUCER 01 PS AND 02
SURPLUS THE S
(PS) CURVE
03 04
PS WITH LOTS OF HOW A LOWER
SELLERS & A PRICE
SMOOTH S CURVE REDUCES PS
 Marginal seller’s cost is $400 CLASS COST OF
PRODUCTION
1 200
2 400
P S
3 600
4 800
Class 1 makes coffee box and charges you $400
 Class 1 gets $200 of producer surplus

800 PS = PRICE – COST

= (Market price – Minimum price to sell) * quantity sold

600
1000
400 800
600
400
200 200
0
1 2 3 4
Q
1 2 3 4
PRICE ($) 120
AV003’S COFFEE PACKS

100

80

60
Mission
40 Statement
20

0
1 2 3 4 5 6

SUPPLY DEMAND
QUANTITY
(PACKS)
PRICE NGÂN TIÊN DIÊN THƯ
($)
>100 0 0 0 0

100 1 0 0
Mission 0

80 1 1 Statement
0 0

60 1 1 1 0

40 2 2 1 1
PRICE ($) 120
COFFEE PACKS

100

80

60
Mission
40 Statement
20

0
1 2 3 4 5 6

SUPPLY DEMAND
QUANTITY
(PACKS)
 PS AT P =$40: A
PRICE ($)
COFFEE PACKS PS AT P=$60: A+B+C
120 DELTA (PS) = B+C
INCREASE IN PS TO
100 ORIGINAL SELLERS: B
PS TO THE NEW
80 ENTRANTS: C

60
Mission
B Statement
40
C
A
A

20

0
1 2 3 4 5 6

SUPPLY DEMAND QUANTITY

(PACKS)
1/ When does PS occur?
2/ Can PS be negative?
3/ How do you calculate PS?
4/ Is PS the same as profit?
Problem
Mercury is the closest planet to the Sun and the
smallest one in the Solar System—it’s only a bit
larger than our Moon. The planet’s name has
nothing to do with the liquid metal, since it was
named after the Roman messenger god
Solution
Venus has a beautiful name and is the second
planet from the Sun. It’s terribly hot—even
hotter than Mercury—and its atmosphere is
extremely poisonous. It’s the second-brightest
natural object in the night sky after the Moon