Consumer and producer surplus, market interventions, and international trade

This course is a part of Microeconomics, a 7-course Topic series from Khan Academy.

This course contains 3 segments:

Consumer and producer surplus

Many times, the equilibrium price is lower than the highest price some folks are willing to pay. For all consumers, this is called consumer surplus. Similarly, the price might be higher than the minimum price at which some are willing to produce. For all the producers, this is called producer surplus. This tutorial covers them both with an emphasis on the visual.

Market interventions and deadweight loss

We can often lose economic efficiency because of things like price floors, ceilings and taxes. This loss in surplus (people who have more marginal benefit than marginal cost are not buying or people who have more marginal cost than benefit are buying) is called deadweight loss.

International trade

In this lesson, we explore how differences between the domestic price of a good and the world price of a good impact markets. We continue this exploration by exploring the effects of international market controls: tariffs and quotas.