What is total surplus? How is it illustrated on a demand and supply diagram?

Total surplus represents the sum of consumer surplus and producer surplus in a market. Consumer surplus is the difference between the maximum amount consumers are willing to pay and the actual amount they pay, whereas producer surplus is the difference between the minimum amount producers are willing to accept and the actual amount they receive. On a demand and supply diagram, consumer surplus is illustrated by the area between the demand curve and the equilibrium price, while producer surplus is illustrated by the area between the supply curve and the equilibrium price. Total surplus is represented by the combined area of these two triangles, reflecting the overall benefit that both consumers and producers receive from participating in the market.