Unit 2.3 · Competitive Market Equilibrium
Social/Community Surplus
AO2AO4
Syllabus Requirement
The sum of consumer and producer surplus; indicates total welfare in a market.
Assessment Objectives
AO2Application and Analysis
AO4Use of Appropriate Skills
Summary
This topic covers social or community surplus, which is the total benefit to society from economic transactions. It is the combination of consumer and producer surplus at a specific market price and output level, highlighting the efficiency of resource allocation in a competitive market.