Total Economic Surplus = Consumer Surplus + Producer Surplus The simplest formula for calculating the consumer surplus is as follows: Consumer Surplus = Maximum Price – Market

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Consumer Surplus

The following formula is used to calculate a total surplus. TS = CS + PS Where TS is the total surplus ($) CS is the consumer surplus ($) PS is the producer surplus ($) Total

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The answer to the equation is 4.

Hence, depending upon the product or service we need to apply area of right triangle formula. i.e, 1/2 (base x height). where base refers to amount of product and height refers to price difference. Use the below calculator to calculate