Question

explain why a single consumer can get consumer surplus. explain why a single producer can get producer surplua

Answer 1

Consumer surplus is the benefit received by consumer in terms of a difference between the willingness to pay and the price actually paid for the product. Suppose that consumer values a particular product worth $10 which represents his willingness to pay. if he is able to purchase that product at a price below $10 then the difference will be his consumer surplus

similarly producer surplus is the benefits received by producer which is measured by the difference between the price received and the willingness to receive. Every producer expects a minimum price to be received for the product sold by him. If he receives a greater price then the difference is considered to be producer surplus.