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Producer Surplus

Producer surplus is the price received by a seller less the minimum amount the seller is willing to accept in exchange for the good (see also: willingness to accept). Someone who was willing to sell her old car for $2000 but manages to get $2500 for it on eBay gets $500 of producer surplus. Don't laugh, I know someone who sold a car on eBay.

For producers as a whole, producer surplus is the area between the price they receive and their willingness to accept, which is given by the height of the supply curve:

Producer Surplus

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Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 08/17/2016