Producer Surplus Calculator

Enter the equations for the demand curve and the supply curve into the calculator. The calculator will evaluate the producer surplus, equilibrium price, and equilibrium quantity.

Producer Surplus Formula

The following formula is used to calculate the consumer surplus.

PS = (MP – M)*QS

  • Where PS is the producer surplus
  • MP is the market price. (actual sell price.
  • M is the minimum price the producer would sell at.
  • QS is the quantity sold.

Producer Surplus Definition

Producer Surplus is the amount of extra capital a producer earns from an increase in market price due to an increase in demand.

Producer Surplus Example

How to calculate producer surplus?

  1. First, determine the market price.

    This is the actual selling price of the good.

  2. Next, determine the minimum price.

    This is the minimum price the producer could sell the good for.

  3. Next, determine the quantity sold.

    Measure the quantity sold at the market price.

  4. Finally, calculate the producer surplus.

    Using the formula above calculate the producer surplus.

FAQ

What is a producer surplus?

A producer surplus is a monetary increase in surplus capital due to increase sales of a good above a minimum sale price.

producer surplus calculator
producer surplus formula

Related Terms

producer surplus calculator
producer surplus formula
how to calculate producer surplus
how to find producer surplus
producer surplus equation
how to calculate producer surplus from supply equation
how to calculate producer surplus from a table
producer surplus formula calculus
how to calculate producer surplus without a graph
how to calculate total producer surplus
how do you calculate producer surplus
how to find producer surplus on a graph
finding producer surplus
how to find the producer surplus
how to calculate the producer surplus
how do you find producer surplus
formula producer surplus