05/06/2026
Producer surplus refers to the difference between the lowest price at which a producer was willing to sell a product and the price at which he actually sold it. Simply put, we can say that a producer was willing to sell his product at a lower price but was able to sell it at a higher price in the market. The profit he makes due to this is producer surplus.
For Example
A producer wanted to sell apples for 10 taka per piece but he was able to sell them for 20 taka. So his profit is 10 taka ,this is the producer supply.
