PRODUCER SURPLUS
\pɹədjˈuːsə sˈɜːpləs], \pɹədjˈuːsə sˈɜːpləs], \p_ɹ_ə_d_j_ˈuː_s_ə s_ˈɜː_p_l_ə_s]\
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In economic terms, it is the difference between the lowest amount that the producer is willing to accept for a good and the present amount at which he sells the goods. The benefit for the producer is higher is this difference is higher. On the standard demand and supply graph, the producer surplus is located between the supply curve and the below the point of intersection of both curves.
By Henry Campbell Black
Word of the day
dust storm
- a windstorm that lifts up clouds of dust or sand a windstorm that lifts up clouds dust or sand; "it was the kind of duster not experienced in years"