ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Consumer surplus for a product is zero when the demand for the product is perfectly elastic. This is because consumers are willing to match the price of the product. When demand is perfectly inelastic, consumer surplus is infinite because a change in the price of the product does not affect its demand.

Detailed explanation-2: -Consumer surplus is zero when the demand for a good is perfectly elastic.

Detailed explanation-3: -If supply is completely elastic, it is drawn as a horizontal line, and producer surplus is zero. If supply is completely inelastic, it is shown as a vertical line, and producer surplus is infinite.

Detailed explanation-4: -It is positive when what the consumer is willing to pay for the commodity is greater than the actual price. Consumer surplus is infinite when the demand curve is inelastic and zero in case of a perfectly elastic demand curve.

Detailed explanation-5: -Also, there is believed to be an inverse relationship between the elasticity of supply and total social surplus in the economy i.e. Higher social surplus can be achieved by lower elasticity of supply and vice versa.