what is total economic surplus 
total economic surplus is equal to the producer surplus plus the consumer surplus it describes the total net benefit to society from free markets in goods or services the bottom linein free markets producers compete with one another to be the low cost producer and grab market share from other companies in their space the result is more quantity and lower prices for consumers often lower than where they would be willing to pay for it this difference between the market price as determined by supply and demand and the willingness to pay is the consumer surplus a consumer surplus is seen as a benefit to the economy 