total surplus and demand curve?

Question

can sum1 explain to me what a total surplus is?
and how is it affect the demand curve?
how about if the demand is decreasing and what will happen to the total surplus?will it increase?decrease?remain the same?or it may change but we can't tell how..?
thx for the help

Answer 1

Surplus is related to the interaction of supply and demand. If demand falls (there is a shift of or along the demand curve), supplies will build up until suppliers adjust production to the new level. I don't understand the term "total surplus" but this goes for any one product.

Answer 2

Consumer surplus - the marginal benefit consumers get from not having to pay any of the prices above the equilibrium price. Producer surplus - the marginal benefit that producers get from the equilibrium price being higher than they were willing to sell it for. Total surplus - the total of the consumer surplus plus the producer surplus plus the government surplus (although the last one may be left out in some classes). If the demand curve shifts to the right, the equilibrium price will increase. The consumer surplus would increase, the producer surplus would decrease, and total surplus would be unchanged. That is my opinion. If you want to know for sure, graph it out.