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Interactive supply and demand
Move a slider to see how market outcomes and economic surplus change.
DemandSupplyPolicy price
Consumer surplus: buyers’ willingness to pay minus what they pay, for units traded.
Producer surplus: sellers’ receipts minus their supply costs, for units traded.
Deadweight loss: gains from mutually beneficial trades that do not occur.
Assumes goods go to buyers with the highest willingness to pay and are supplied by the lowest-cost sellers. No government purchases, search costs, or other rationing costs.