What is total surplus? How is it illustrated on a

demand and supply diagram?

A surplus is the excess benefit one receives for buying or selling at the market price, the competitive market price providing a better outcome.

Consumer surplus refers to the difference between the price a consumer is willing to pay and the price they must pay.

Similarly, producer surplus refers to the difference between the price a producer is willing to receive and the price they actually receive.

Total surplus also known as economic surplus or social surplus can be obtained by the sum of consumer surplus and producer surplus.

Consumer surplus is shown by the area between the demand curve and the equilibrium price. Producer surplus is the area between the equilibrium price and the supply curve. So, the total surplus is the area between the demand curve and the supply curve, adjacent to the y-axis..