FIGURE 1 WILLINGNESS-TO-PAY AND WILLINGNESS-TO-SELL
In a transaction with a single buyer and a single seller, consumer surplus ($2,800) is the difference between the maximum amount the buyer was willing to pay ($20,000) and the actual price paid ($17,200). Producer surplus ($2,200) is the difference between the actual price received ($17,200) and the minimum amount the seller was willing to accept ($15,000).Bright/Dreamstime.com