ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The equilibrium point shows the price point where the quantity that the producers are willing to supply equals the quantity that the consumers are willing to purchase. This is the market equilibrium quantity to supply.

Detailed explanation-2: -Definition: Producer surplus is defined as the difference between the amount the producer is willing to supply goods for and the actual amount received by him when he makes the trade. Producer surplus is a measure of producer welfare.

Detailed explanation-3: -The equilibrium price is the only price where the plans of consumers and the plans of producers agree-that is, where the amount consumers want to buy of the product, quantity demanded, is equal to the amount producers want to sell, quantity supplied. This common quantity is called the equilibrium quantity.

Detailed explanation-4: -Supply refers to the quantity of goods a supplier offers to consumers. Supply and demand are key players in determining prices and goods consumption or services. The law of supply states that having higher demand is a positive indication for suppliers to increase supply.

Detailed explanation-5: -Producer surplus is the total amount that a producer benefits from producing and selling a quantity of a good at the market price. The total revenue that a producer receives from selling their goods minus the marginal cost of production equals the producer surplus.