Producer surplus
What Producer surplus means in Economics A-Level, as defined for AQA.
Definitions of Producer surplus
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Reference: AQA
The area above the domestic supply curve, shaded to show the gain in domestic producer surplus when a tariff is imposed.
The benefit to producers that is increased by price discrimination, along with profit.
Topics that use Producer surplus
- Price discrimination (AQA A-Level)
- Trade (AQA A-Level)
Related terms
- Allocative inefficiency
- Arbitrage
- Comparative advantage
- Consumer surplus
- Deadweight welfare loss
- Economic efficiency
- Economic integration
- Economies of scale
Using Producer surplus in the exam
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