A level Producer and consumer Surplus Quiz 1

In this quiz, we are going to be looking at the study of producer and consumer surplus. It contains a lot of interesting theories such as Adam Smith’s invisible hand concept, cost of production, the demand curve, supply curve, and so on. You will learn a lot about this topic after going through this quiz.

Producer surplus can be defined as the difference between the price received by a firm, and the price it is willing to sell at. It is thus the difference between the supply curve and the market price. On the other hand, consumer surplus has to deal with the area between the demand curve and the market price. That is, consumer surplus is the difference between the price consumers pay and the price they are willing to pay. Another important thing to take note of is the marginal cost, which is the price of a product unit along the supply curve. Also, total surplus = producer surplus + consumer surplus.

This economics quiz contains 15+ powerful revision questions to aid you in understanding this topic to your fingertips. All you need to do is take the quiz and see how much you know. Have a nice time answering.